FCCC/CP/2013/INF.1. United Nations

Transcription

1 United Nations FCCC/CP/2013/INF.1 Distr.: General 5 September 2013 English only Conference of the Parties Nineteenth session Warsaw, November 2013 Submissions on information from developed country Parties on the resources provided to fulfil the commitment referred to in decision 1/CP.16, paragraph 95 Note by the secretariat Summary The Conference of the Parties (COP), at its sixteenth session, invited developed country Parties to submit to the secretariat, by May 2011, 2012 and 2013, for compilation into an information document, information on the resources provided to fulfil the commitment by developed countries to provide new and additional resources, including forestry and investments, through international institutions, approaching USD 30 billion for the period , with a balanced allocation between adaptation and mitigation, including ways in which developing country Parties access these resources. This document contains the information provided by the developed country Parties by 2013 in response to this invitation by the COP. GE

2 Contents I. Introduction... 3 A. Mandate... 3 B. Scope of the note... 3 C. Summary... 4 II. Submissions from Parties... 8 A. Australia (Submission received 7 June 2013)... 8 B. Canada (Submission received 29 May 2013) C. Iceland (Submission received 14 August 2013) D. Ireland and the European Commission on behalf of the European Union and its member states (Submission received 29 May 2013) E. Japan (Submission received 31 May 2013) F. Liechtenstein (Submission received 17 July 2013) G. New Zealand (Submission received 2 September 2013) H. Norway Submission received 12 August 2013) I. Switzerland (Submission received 6 May 2013) J. United States of America (Submission received 3 June 2013) Page 2

3 I. Introduction A. Mandate 1. The Conference of the Parties (COP), at its sixteenth session, took note of the collective commitment by developed countries to provide new and additional resources to developing country Parties, including forestry and investments through international institutions, approaching USD 30 billion for the period , with a balanced allocation between adaptation and mitigation. The COP also noted that funding for adaptation will be prioritized for the most vulnerable developing countries, such as the least developed countries (LDCs), the small island developing States (SIDS) and Africa. This commitment has become known as fast-start finance. 2. Following on from this, the COP invited developed country Parties, in order to enhance transparency, to submit to the secretariat for compilation into an information document, by May 2011, 2012 and 2013, information on the resources provided to fulfil the commitment referred to above, including ways in which developing country Parties access these resources. 3. The COP, at its eighteenth session, acknowledged the delivery of fast-start finance by developed country Parties to fulfil their collective commitment of USD 30 billion, and invited developed country Parties to expedite its full disbursement. 4. The secretariat has received ten such submissions, namely from Australia, Canada, Iceland, Ireland and the European Commission on behalf of the European Union and its member States, 1 Japan, 2 Liechtenstein, New Zealand, Norway, Switzerland and United States of America. B. Scope of the note 5. This document contains the submissions of the developed country Parties named above. These submissions have been imported electronically for ease of dissemination of information, including on the World Wide Web. 3 The secretariat has made every effort to ensure the correct reproduction of the texts as submitted. 6. A general overview of the submissions and information provided by developed country Parties is outlined in chapter I.C below. 1 Ireland and the European Commission on behalf of the European Union and its member States provided detailed information on specific examples of fast-start finance activities of the member States in its submission. This information was provided in the form of a separate annex. In order to reduce paper consumption, this comprehensive annex is only provided on the official UNFCCC website. See < 2 Japan provided detailed information on its fast-start finance activities in the submission. This information was provided in the form of a separate annex. In order to reduce paper consumption, this comprehensive annex is only provided on the official UNFCCC website. See < 3 < 3

4 C. Summary 1. Sources of funding 7. The information submitted by developed countries suggests that the reported funding comes from public sources. However, some Parties also included information on public funding used to leverage private-sector financing, specifically highlighting the critical role of public finance in mobilizing private and public investments, as well as the important role that private finance plays in tackling climate change. In their submissions, many Parties included estimates on amounts of additional private investments leveraged by public funding. Furthermore, some Parties provided information on private funding, distinguishing this information from the information provided on public funding. Instruments used in this context include co-financing, loans, loan guarantees, public private partnerships and insurance in developing countries. 8. Examples provided by some Parties of public funding being used to leverage private funds include the deployment of clean energy, energy efficiency measures, renewable energy projects and infrastructure projects. For example, one Party indicated that its clean energy-related assistance uses public sources to mobilize and incentivize commercial investment, leading to increased energy access and energy efficiency. Another Party reported on work being undertaken to establish a mechanism to leverage private investment through public funds. A different Party reported that it collaborated with a number of multilateral organizations, such as the International Finance Corporation (IFC), to mobilize private sector investment in climate-friendly projects in developing countries, including, for example, investment in venture capital and private equity in developing countries. Also in this context, one Party highlighted the lack of a clear definition of, as well as a lack of comprehensive and reliable data with regard to climate financing from private sector sources, and underlined its efforts to quantify private sector contributions for future reporting purposes. 2. Funds, channels and instruments 9. Developed country Parties used existing bilateral and multilateral agencies as channels for the delivery of financial support. Parties identified, inter alia, the Global Environment Facility (GEF) Trust Fund, the Special Climate Change Fund, the Least Developed Countries Fund, the Adaptation Fund, the Forest Carbon Partnership Facility, the Climate Investment Funds, and multilateral development banks as channels for the delivery of financial support to developing countries. 10. In their submissions, many developed country Parties indicated that the resources provided were new and additional compared with climate change financing prior to According to the submissions, the funds were provided mainly in the form of grants and concessional lending, and, in some cases, technical assistance and contributions to multilateral funds. Additional instruments that have been reported in relation to the provision of funding include, inter alia, export import credits, loan guarantees, equities, insurance and reinsurance schemes, and co-financing with national development banks. 12. As indicated in all submissions, resources were made available for mitigation and adaptation, including REDD-plus, 4 and other sectors, such as energy, sustainable landscapes, forests, agriculture, transport, disaster risk management, water and sanitation, 4 Policy approaches and positive incentives on issues relating to reducing emissions from deforestation and forest degradation in developing countries; and the role of conservation, sustainable management of forests and enhancement of forest carbon stocks in developing countries. 4

5 natural resource management, as well as for capacity-building and transfer of technology. The submissions also included information on the overall sectoral distribution of funding provided. 13. In their submissions, most developed country Parties provided examples of concrete mitigation and adaptation projects and programmes, including specific REDD-plus initiatives undertaken in various developing countries. Many Parties additionally provided links to websites with further information on the available resources, eligibility criteria and ongoing projects and programmes. Several Parties pointed to local or regional representations in a position to provide more information and/or address queries on the submissions. One Party also highlighted the important role that national or regional donor agencies play as a first contact point in developing countries. 14. Prioritization of the most vulnerable developing countries, LDCs, SIDS and Africa in the allocation of funding, especially in the area of adaptation, was reported by most developed countries. 3. Reporting 15. In terms of the reporting format, each country adopted its own approach and methodology. In many cases, countries provided additional details compared with the 2011 and 2012 submissions. Many Parties also provided information for the overall fast-start finance period and not exclusively for the year Most Parties used their own currency in reporting the amount of financial resources mobilized on the basis of their own national or regional fiscal calendars. A few countries distinguished in their reports between funding allocated and funding disbursed at the time of writing of the respective reports. Some countries provided more detailed information on elements that were excluded from the specific report, such as activities with climate co-benefits that fall under the regular programmes of multilateral institutions, as well as private or public funds used to purchase international emission reduction certificates. 16. With regard to reporting on contributions to multilateral organizations and funds, one Party specifically excluded information on any share of its core contributions to such organizations and funds, with the exception of the GEF, noting the difficulty of reporting the climate-relevant percentage of its contributions to multilateral organizations. It is in this context that this Party supports the collective effort of the multilateral development banks to generate their own climate finance data and encourages other multilateral funds and agencies to follow suit. Another Party also pointed out the difficulty of accurately reporting the percentages of core climate-related funding to multilateral organizations, as well as distinguishing between mitigation and adaptation funding in this context. In order to avoid subjective estimates, this Party reported the overall core support to multilateral organizations that it classifies as climate-relevant. This Party also highlighted the possibility of multilateral organizations making their own estimates of these percentages in order to avoid discrepancies between countries. 17. Further reporting-related issues identified by some of the Parties include, for example, the difficulty of distinguishing between designated adaptation activities from general development assistance and of making use of the reporting system of the Development Assistance Committee (DAC) of the Organisation for Economic Cooperation and Development (OECD), whose climate change mitigation and adaptation markers only indicate the degree of relevance, thereby complicating not only the interpretation of figures, but also the attribution of activities to certain categories, for example when related to adaptation activities such as disaster risk reduction assistance. In this context, one Party also highlighted that the Rio markers of DAC of the OECD do not quantify expenditures towards the policy objective of funded activities. Therefore, this 5

6 Party has initiated a system to standardize the quantification of climate change related expenditures based on the Rio markers. 18. A few Parties indicated that updated information on climate finance will be made available in the near future as some fast-start finance activities and projects are still ongoing. One Party also specifically reported on slightly revised total amounts for previous years owing to additional information received after the submission of the previous reports. 19. Furthermore, a few Parties provided a rationale for their share in the provision of new and additional resources, in relation to other developed countries, with regard to the entire fast-start finance commitment period. 4. Effectiveness and impacts 20. In some cases, the submissions made reference to the importance of effective results and an effective and swift implementation, through close coordination among development actors for example, of projects and programmes supported by funds made available to developing countries. The outcomes of these activities should be measurable and verifiable within the broader context of developing country needs and priorities, sustainable development and the evolving climate regime. 21. A few countries also made reference to the importance of enabling environments, within developing countries, for maximum impact of the different funds and instruments provided. Examples include the phasing out of fossil fuel subsidies and other distortions, the development and implementation of effective multisectoral climate change policies and the stimulation of investment through appropriate national policies and framework conditions. 5. Lessons learned and underlying principles 22. Some Parties further included information on lessons learned, especially as concerns long-term finance, as well as underlying principles that were developed and used during the fast-start finance period. In some cases, the information provided in this context was more elaborate than in previous years. For example, many Parties reported an increased integration of climate issues into broader development strategies. In this context, one Party reported that the experience of existing institutions and national governmental and non-governmental implementing agencies in delivering aid to developing countries was being fully utilized, and that the agreed principles of aid effectiveness established by the Rome Declaration on Harmonisation and the Paris Declarations on Aid Effectiveness and the Accra Agenda for Action were being fully respected. It also highlighted its commitment to ensuring that fast-start finance and other climate finance neither undermines nor jeopardizes the fight against poverty and continued progress towards the Millennium Development Goals. 23. Additionally, some Parties emphasized the importance of dialogue, close cooperation, consultation and joint work with partner countries, multilateral institutions, civil society and the private sector in assessing and responding to needs, identifying best practices and barriers, setting priorities, considering opportunities to strengthen the mobilization of finance, promoting innovation and encouraging systematic knowledge dissemination. In this regard, the importance of national ownership and capacity, of enabling environments in developing countries, of readiness in partner countries, of improved access to climate finance, and of need-driven approaches were also highlighted by many countries. Furthermore, one Party specifically highlighted how vital creating pathways for developing countries is to harnessing financial and technological opportunities. 24. Another aspect that was highlighted by many submissions is the importance of a robust system for ensuring measurement, reporting and verification, including of private 6

7 sector climate finance, as well as the need for a comprehensive and globally uniform set of statistics for climate financing. In this regard, some Parties indicated that they will continue to work closely with recipient countries and the international community on gaining insight into measurement, reporting and verification of support from the implementation of faststart finance commitments. They highlighted, for example, how important it is to monitor investment results in order to be able to build on effective approaches to mobilizing private finance in support of developing country actions and targets. One Party specifically indicated that it will continue to monitor and report on the distribution of funds. 25. Further issues identified by some Parties included, inter alia, the importance of selforganization of local populations and of the support for development of socially, economically and environmentally friendly initiatives, as well as the relevance of solving gender problems, empowering women and raising awareness among young people and civil society. 26. In terms of lessons learned, some Parties further acknowledged the importance of focusing on results, making use of donor strengths and expertise, finding the right partner, creating collective knowledge on climate finance, harmonizing donor activities, and ensuring the scalability and transferability of activities. Another lesson learned was that for most investment channels, the time from the development of investment plans to fully developed projects is considerable, and that, for some newer channels, it also takes time to establish operational procedures and management tools, thereby delaying the phase of substantial disbursement for implementation, which should be taken into consideration in the operationalization of the Green Climate Fund and national climate funds. 6. Funding post In their submissions, most developed country Parties indicated their strong commitment to climate finance activities by raising the issue of the provision of funding beyond 2012 within the context of the goal of jointly mobilizing USD 100 billion per year by 2020 to address the needs of developing countries in the context of meaningful mitigation actions and transparency in implementation. For example, one Party specifically included budgetary information on climate finance up to 2015, another Party also included information on a specific commitment it made in 2013 to be delivered over the next three years. Another Party indicated that work towards the identification of strategies and approaches to scaling up climate finance from 2013 to 2020 is continuing in a constructive manner. Yet another Party called on other Parties to contribute and mobilize climate financing in view of the longer-term goals. 28. In this regard, a few Parties underlined the critical role public finance will play beyond 2012, particularly for adaptation, but at the same time pointed out that public sources should be used in more targeted ways to leverage additional funds from the private sector. Some Parties pointed out that this could be achieved by combining a finite core of public money with policies targeted towards substantially increasing the flow of private funds into climate-friendly investments in both mitigation and adaptation. In this context, attention was drawn to the importance of exploiting existing synergies and complementarities and of efficient use of available funding, as well as to the need for domestic efforts with regard to enabling environments, for comprehensive and nationally appropriate adaptation and mitigation plans and low-emission development strategies. 29. In terms of burden-sharing in the pursuit of the long-term goal, one Party indicated, for example, that contributions made during the fast-start finance period do not prejudice any burden-sharing in future global climate financing. Another Party called for short and long-term international climate change financing from public sources to rest on a fair burden-sharing formula. 7

8 II. Submissions from Parties A. Australia Australia s Fast-start Climate Finance July 2010 June 2013 INVESTING IN EFFECTIVE AND SUSTAINABLE CLIMATE OUTCOMES This is the final report on Australia s fast-start climate finance investment package, which began in July 2010 and ends on 30 June 2013 (in line with Australian financial years). Australia is committed to transparency and regular reporting on climate finance. Through the fast-start period, Australia has provided progress reports at each UNFCCC Conference of the Parties, and update reports at the end of each Australian financial year. This report shares lessons learned through the fast-start period, drawing on case studies and examples from a selection of fast-start funded initiatives. It is not intended as a comprehensive stocktake of Australia s fast-start program, as full financial information will only become available after the conclusion of the Australian financial year (30 June 2013). Instead, this report seeks to demonstrate how fast-start projects achieved adaptation and mitigation outcomes for vulnerable people, and how future activities could be improved. While drawn from the Australian experience, these lessons have broader relevance and should resonate with all stakeholders engaged in climate change investment activities in developing countries. Australia will prepare a detailed account of its fast start spending, as an addendum to this report, after financial data becomes available following the end of the fast-start period on 30 June For more information on Australia s fast-start climate change finance, visit: Overview Australia committed A$599 million over three Australian financial years (FY2010/11 FY2012/13) to the collective fast-start climate finance goal as part of its continued commitment to support developing countries in their efforts to respond to climate change. 1 Australia has met this commitment. A$599 million has now been allocated and fully programmed to support an array of climate change activities. This investment package has supported a range of actions to reduce carbon emissions, enhance technology development and capacity building and help developing countries adapt to the effects of climate change. Many of these activities continue to deliver results into the future. Australia s fast-start finance investment package has also produced lessons for effective and sustainable climate outcomes. These lessons are: 1. Focus on results: through Australia s fast-start finance package, relatively modest investments were able to achieve significant results especially where focused on clear, tangible outcomes. 1 Equivalent US$621 million (based on monthly average conversion rate, April 2013, Reserve Bank of Australia). For more on Australia s contribution, and other countries responses to fast-start, see Submission of information from developed country Parties on the resources provided to fulfil the commitment referred to in the decision 1/CP.16., para 95. (document number FCCC/CP/2012/INF.1) at 8

9 2. Donor strengths and expertise: Australia was able to share knowledge and expertise from its own domestic programs in areas such as energy efficiency, science and adaptation, and measurement, reporting and verification (MRV), to inform fast-start activities. 3. The right partner: finding the right investment partner - either bilateral or multilateral - can improve local engagement, tailor project management, and make more efficient use of resources. 4. National ownership: responding to national priorities, and seeking a high level of engagement and decisionmaking by national governments, can improve the effectiveness and uptake of a program. 5. In-country capacity: programs can contribute to broader climate action and help to make results long- lasting by building institutional and technical capacity in developing countries. 6. Enabling environments and policy levers: by helping to put in place supportive policy and institutional frameworks, fast-start projects can create environments favourable to long lasting results and catalyse private investment. 7. Collective knowledge: through the fast-start experience, Australia found that recording data and sharing knowledge allowed stakeholders to learn from one another, coordinate efforts, and build upon past experience. 8. Harmonisation: sharing information and coordinating investments can help to avoid duplication and increase collaboration between donors. Investments that align with developing country priorities can also produce cobenefits to maximise the impact of every dollar spent. 9. Scaled up and transferable: investing in projects that can be scaled up or transferred to countries or sectors with similar needs allows results to be achieved beyond the scope of the original investment. Introduction: Australia s Fast-start Climate Finance Australia s fast-start climate finance investment delivered A$599 million in climate finance to generate adaptation and mitigation outcomes in developing countries and produce valuable lessons for future finance delivery. Australia s national interest It is in Australia s interest to assist developing countries to build their capacity to reduce carbon emissions (mitigation) and to take action to adapt to the effects of climate change (adaptation). Because climate change has the potential to impede and even reverse development progress, climate change objectives overlap with and reinforce Australia s development objectives. Early action on both adaptation and mitigation will reduce global costs and the costs to individual countries. To this end, Australia supports a coordinated approach that will deliver financing where it is needed most. Fast-start finance In 2010, developed countries pledged to provide US$30 billion in fast-start climate finance by 2012 to kick-start mitigation and adaptation initiatives in developing countries and to produce lessons for future investments. 2 Australia and other developed countries including Canada, the countries of the European Union, Iceland, Japan, Liechtenstein, New Zealand, Norway, Switzerland and the United States contributed to this collective goal. Australia committed A$599 million over three Australian financial years (FY2010/11 FY2012/13) to this goal as part of its continued commitment to support developing countries in their efforts to respond to climate change. 3 This finance supported a range of activities to reduce carbon emissions, enhance technology development and capacity building, and help developing countries adapt to the effects of climate change. Australia has met its fast-start commitment. A$599 million has now been allocated and fully programmed to support a range of activities addressing climate change issues in developing countries. 2 3 Copenhagen Accord, 2009 (Decision 2/CP.15) and Cancún Agreements, 2010 (Decision 1/CP.16). Equivalent US$621 million (based on monthly average conversion rate, April 2013, Reserve Bank of Australia). 9

10 Australia s approach to fast-start Australia targeted its A$599 million fast-start investments in order to promote effective, sustainable activities addressing climate change in developing countries. Focusing on the Pacific, Asia, Africa and the Caribbean, efforts were made to maximise climate returns across both mitigation and adaptation interventions. Adaptation In allocating its fast-start investment, Australia recognised the importance of adaptation to countries particularly vulnerable to the effects of climate change. Australia s fast-start funding has supported a range of countries from Kiribati in the Pacific to Saint Vincent and the Grenadines in the Caribbean to plan for and respond to the unavoidable impacts of climate change. Using knowledge gained from its own domestic adaptation work program and expertise in areas like coastal management, agriculture, water and infrastructure, Australia is promoting effective, evidence-based adaptation strategies in developing countries. Under the International Climate Change Adaptation Initiative, Australia is working with countries to implement holistic adaptation responses to identify climate risks and build local and national capacity to help address these risks. Local and national governments and communities are partners in the delivery of these projects, ensuring that Australia s international adaptation program is building in-country capacity. Australia s international fast-start adaptation program focused on our near neighbours in Asia and the Pacific, many of whom are particularly vulnerable to climate change. This focus has allowed Australia to identify opportunities for regional harmonisation and knowledge sharing. Australia has also made targeted investments in South Asia, Africa and the Caribbean. These bilateral and regional contributions have achieved concrete and effective adaptation outcomes throughout the fast-start period. 40,000 people in Vanuatu and more than 29,000 people in Solomon Islands have benefitted from the upgrade of roads and bridges vulnerable to floods and storm surges. Communities in Papua New Guinea (Manus and New Ireland) are being supported to combat challenges to water and food security arising from increased coastal inundation- through the construction of dry stone walls, coral farming, drought resistant crops, protecting marine areas, and mangrove rehabilitation. Above: Australia is working in Papua New Guinea to assist communities to build resilience to climate change into the future. Photo: Commonwealth of Australia. 10

11 Above: The development of drought resistant crop gardens and mangrove propagation to assist communities in Papua New Guinea to adapt to climate change. Photo: Commonwealth of Australia. Activities including rain water harvesting, improvements to the water reticulation system, building seawalls and planting mangroves have improved water security in Kiribati. The Pacific Australia Climate Change Science and Adaptation Planning program has improved understanding of climate change science and boosted the capacity of our partner countries to undertake adaptation planning. For example, Fiji and Solomon Islands are using climate projections in nation planning and climate change policies. Vietnam is being supported to reduce its vulnerability to climate change, particularly in the Mekong Delta where rising sea levels, salt water intrusion and flooding are already affecting coastal communities. Above: In Vietnam, silt trap fences like this assist to reduce risks to communities from storm surges and flooding by reducing wave energy from storm surges by 60 per cent and prevent silt from stifling mangrove growth. Photo: GIZ. 11

12 In Bangladesh, which is particularly vulnerable to floods and cyclones, more than 620 community disaster risk assessments have been developed, under a Comprehensive Disaster Management Program. Through the multilateral Least Developed Countries Fund (LDCF), Least Developed Countries are receiving support to prepare and implement National Adaptation Programs of Action (NAPAs), which identify urgent and immediate needs to adapt to climate change. Mitigation With Australia s help, significant initiatives are also underway to assist developing countries to reduce their emissions and prepare for a low carbon future. This includes financial support for the development of low carbon growth plans, renewable energy and energy efficiency projects, and building capacity to participate in carbon markets. Australia recognises that the key to achieving a low-emissions future is creating pathways for developing countries to harness financial and technological opportunities. Understanding that each country s pathway will be different, Australia has used its fast-start finance to support a wide range of initiatives, including the United Nations Development Program s Low Emissions Capacity Building Program. Australia is also promoting green growth research and planning initiatives such as the Global Green Growth Institute. Australia also supports developing countries to reduce emissions from deforestation and forest degradation in (REDD+). Australia is working bilaterally with countries, such as Indonesia, and through key multilateral mechanisms, such as the World Bank s Forest Investment Program (FIP) to achieve both mitigation outcomes and alternative livelihood options for communities. These actions are part of the solution to engender increasingly ambitious mitigation action at a global level. Australia has supported Indonesia to reduce its carbon emissions from deforestation and forest degradation including through developing a National Carbon Accounting System; establishing a REDD+ demonstration project in Central Kalimantan; and REDD+ policy dialogue and capacity building. Above: Australia is supporting reforestation work. Photo: Commonwealth of Australia 12

13 Above: Forest in Kalimantan, Indonesia. Photo: Commonwealth of Australia The Clean Technology Fund is promoting scaled-up financing for the demonstration, deployment and transfer of low-carbon technologies with significant potential for long-term greenhouse gas emissions savings. Under the Pacific Appliance Labelling and Standards Program, twelve Pacific Island countries including Fiji, Tonga, Samoa, Kiribati, Tuvalu and Cook Islands are being supported to enact and implement standards and labelling for appliances such as refrigerators, air conditioners, and lighting thereby reducing energy use, emissions and energy bills. The Green Building Council of South Africa is being supported to carry-out the second phase of a green upgrade of low-income homes leading to reduced greenhouse gas emissions and environmental impacts, savings in energy consumption, and opportunities for the local community. Australia s fast-start finance package is delivering outcomes such as strengthening climate resilience and building capacity for low-emissions growth and will continue to deliver results into the future. Australia s A$599 million fast-start climate finance package is: Fully allocated Spanning three Australian financial years ( to ) Supporting adaptation to assist developing countries to plan for and respond to the unavoidable impacts of climate change, focusing on the poorest and most vulnerable Supporting mitigation to help developing countries to reduce their emissions, for example by supporting low emissions development and efforts to reduce deforestation Prioritising support for the most vulnerable countries, including Small Island Developing States (SIDS) and Least Developed Countries (LDCs) Using bilateral and multilateral partnerships to deliver these outcomes Achieving real and measurable outcomes on the ground, as well as building the capacity of partner countries to undertake future action on climate change Future climate finance Australia remains committed to climate finance in support of mitigation and adaptation action and will continue to plays its part in global scale-up efforts beyond the fast-start period. Developed countries have committed to a goal of jointly mobilising US$100 billion a year by 2020 to address the needs of developing countries and Australia remains committed to this global goal. Australia recognises the key role that climate finance from all sources will play in scaling-up and supporting mitigation and adaptation action. While Australia will continue to work towards mobilising financial flows from the private sector, the ongoing provision of finance from public sources remains a priority. 13

14 This report In light of the significance of the climate challenge, it is important to make every dollar count. Australia will focus on delivering its future climate finance effectively to maximise climate returns. This report shares lessons learned during the fast-start period, using case studies and examples from a selection of faststart funded initiatives. Its purpose is to demonstrate how key fast-start projects achieved adaptation and mitigation outcomes, and how future activities could be improved. Australia will prepare a detailed account of its fast-start spending, as an addendum to this report, after financial data becomes available following the end of the fast-start period on 30 June For more information on Australia s faststart finance, visit Australia s fast-start experience provides lessons for effective and sustainable climate finance investments. 1. Focus on results Effective climate finance is more than a question of dollars spent. As noted by the Australian Government s aid policy, effective aid is more than just how much money we are spending. It is about the results we want to achieve and our ability to measure and report on the impact of our aid on the lives of poor people. 4 Similarly, when addressing climate issues, it is the design of the project that counts. Through the fast-start period, Australia invested in a range of activities that achieved important outcomes and provided excellent value for money. Key to this was a strong focus on achieving climate change and development results. Case study: Modest investment for significant results Cato Manor Green Street Phase 2 (A$125,000) Above: Australia s fast-start finance is being used to employ local staff to carry out this energy efficiency and sustainability development initiative. Photo: Willem De Lange, on behalf of the Green Building Council of South Africa. With A$125,000, the Cato Manor Green Street Phase 2 project completed a green retrofit of 26 low-income houses in Durban, South Africa, installing solar water heaters, energy efficient lighting, heat-insulation cookers, roof insulation, 4 An Effective Aid Program for Australia: Making a real difference Delivering real results (AusAID, 2012), p.24 Publications/Documents/AidReview-Response/effective-aidprogram-for-australia.pdf. 14

15 rainwater tanks, food gardens and fruit trees. In addition to the retrofit itself, the project provided short-term employment and training to nine community members and leveraged an additional A$25,000 in complementary investment. In a country aiming to build 3 million low-cost homes by 2025, the project is now being used to demonstrate the health, livelihood and energy saving benefits of incorporating energy efficiency and emissions reduction measures into lowcost housing construction. The project is an example of what can be achieved on a very small budget if carefully designed with clear results in mind. 2. Donor strengths and expertise In a crowded climate finance space, it is important for donors to ensure that their investments avoid duplication and have maximum impact. Focusing on initiatives that leverage a donor s unique expertise increases the likelihood of the investment making a valued and effective contribution. Carbon markets, adaptation science, energy efficiency and land sector emissions accounting and abatement methodologies are fields in which Australia has expertise. Australia funded a number of initiatives in the fast-start period which focused on these areas, establishing opportunities for developing countries to learn from Australia s experience. The World Bank Partnership for Market Readiness, for example, is allowing Australia to share its carbon markets experience with developing countries aiming to introduce carbon pricing (see more on the PMR below). By directly managing some projects, convening high level meetings, or procuring valuable research, donors are able to use their skills to provide value to projects which goes beyond the provision of finance. In this way, Australia has drawn upon its skills and expertise when designing and implementing fast-start projects to help developing country partners. Case Study: Sharing Australia s success Savanna Fire Management Initiative (A$2.25m) Above: Fire management, Fish River, Australia. Photo: Commonwealth of Australia. Through a new methodology developed under Australia s Carbon Farming Initiative (CFI), Indigenous communities and pastoralists in tropical north Australia are reducing emissions by reintroducing traditional-style early dry season savanna burning practices. The CFI is allowing these groups to receive payments for the reduction, supplementing other income streams. Australia is now exploring the applicability of this methodology in developing countries, in collaboration with the United Nations University and the North Australian Indigenous Land and Sea Management Alliance Ltd. The initiative will share Australia s savanna fire management mitigation methodology and project experience with developing 15

16 countries, while also laying the groundwork for establishing projects by identifying potential pilot sites and in-country partners. Case study: Australia s policy-making experience The Pacific Appliance Labelling and Standards program (A$3 million) As a global leader in domestic energy efficiency policies, Australia is assisting twelve participating Pacific Island countries including Fiji, Tonga, Samoa, Kiribati, Tuvalu and Cook Islands to enact and implement standards and labelling regulations for appliances such as refrigerators, air conditioners, and lighting, thereby reducing energy use, emissions and energy bills. It has been estimated that the introduction of appliance energy efficiency standards and labelling in the Pacific region could reduce emissions by approximately 2,230 kt CO2 equivalent and save between US$600 and $900 million dollars over a fifteen year period ( ). Spotlight on Energy Efficiency Energy efficiency can be a powerful and cost-effective method of achieving a sustainable energy future. Energy efficiency measures for buildings, appliances and equipment can reduce the need for investment in energy infrastructure, cut energy bills, improve health, increase competitiveness and improve consumer welfare. Environmental benefits can also be achieved by the reduction of greenhouse gas emissions and local air pollution. Energy efficiency can also alleviate energy security concerns by decreasing reliance on imported fossil fuels. For over 25 years Australia has developed and implemented a standards and labelling program to improve the energy efficiency of equipment and appliances. Minimum Energy Performance Standards (MEPS) and Energy Rating Labels (ERL) have been two regulatory tools that have successfully improved the energy performance of products while delivering energy savings to households and businesses. Through these domestic activities, Australia has gained valuable experiences and expertise that are now being shared with developing countries. Australia supports domestic and regional energy efficiency projects in Asia and the Pacific. Some of these projects have been running for many years, and will continue beyond the fast-start period. During the fast-start period, Australia supported the Pacific Appliance Labelling and Standards (PALS) Program, The Vietnam Energy Efficiency Standards and Labelling (VEESL) Program, the continuation of the Lighting Information and Technical Exchange for Standards (lites.asia) and the United Nations Environmental Programme s (UNEP) en.lighten initiative. These projects assist developing countries in Asia and the Pacific to develop energy efficiency policies, educate consumers, enact regulations and monitor, verify and enforce these systems. 3. The right partner Donor countries rarely have the resources or in-country capacity to deliver projects themselves, often making finding the right partner key to a project s success. In a bilateral context, the right partner can improve local engagement and leverage local support, maximising the effectiveness of an investment. Australia s partner for the Cato Manor Green Street Retrofit, the Green Building Council of South Africa, for example, was highly successful in securing local project management expertise for the activity. As a result, the project achieved its desired results on time and on budget, and recorded important data about technologies and methods for green retrofits, which can inform future investments. Multilateral funds can be valuable project partners, particularly in areas where donor coordination is important, or where implementing an activity will require resources beyond the capacity of a single donor. For example, through the International Forest Carbon Initiative, Australia has made significant investments in the World Bank s Forest Carbon Partnership Facility and Forest Investment Program. These multilateral bodies are at the forefront of the global effort to coordinate approaches to REDD+ implementation amongst contributors, recipients, and the broader private and nongovernment sectors. Case study: Supporting countries that are already acting The Vietnam Energy Efficiency Standards and Labelling Program (A$2.75 million) This program builds upon Vietnam s existing energy efficiency standards and labelling program to help consumers make informed purchasing decisions that improve the country s energy intensity and reduce carbon emissions. It also targets the Government of Vietnam s monitoring and verification capabilities. By fostering a high level of engagement 16

17 with the Government of Vietnam and enlisting the support of international experts to advise on elements of the scheme, this project is building the capacity of government officials and helping to inform the development of policy and legislation. Case study: Partnerships for sustainability Energising Development partnership (A$20 million) Australia is supporting the Energising Development partnership (EnDev) to develop sustainable markets for improved cooking technologies in developing countries including in Asia, Africa and Latin America. The unsustainable collection of fuel wood is an important driver of forest degradation. Australia s support will promote sustainable cooking technologies as well as a better understanding of the relationship between fuel wood use and deforestation and forest degradation. In supporting the EnDev Partnership, Australia is helping to build an existing initiative that has a proven track record in delivering access to sustainable energy. The lead agency for implementing the Partnership is Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) which has a large and well established network in developing countries, ensuring that supported activities are responsive to regional and local as well as national needs. 4. National ownership Climate finance investments are more sustainable and effective when owned and driven by partner governments. Where investments address national priorities or involve a high level of engagement and decision-making by national governments, the effectiveness and uptake of a program can be increased. Throughout the fast-start period, Australia has looked for opportunities to increase national ownership of projects, by addressing country needs, working with government partners and using partner country processes and systems to deliver climate finance projects. Case study: Addressing country needs The World Bank Forest Carbon Partnership Facility (A$44.6 million) Australia supports the World Bank s Forest Carbon Partnership Facility (FCPF), a global partnership of governments, businesses, civil society, and indigenous peoples established to provide financial and technical assistance to countries seeking to build their capacity to effectively implement REDD+. National ownership is well evidenced at the FCPF, where features such as the Readiness Plan Proposal process encourage countries to identify their specific capacity and support needs to implementing REDD+ at the national level. This country-driven process encourages ownership of the process from the national government down to the local community level. In ensuring this shared ownership, REDD+ is given the best chance to flourish throughout a country. Spotlight on Reducing Emissions from Deforestation and Forest Degradation (REDD+) Deforestation accounts for a large proportion of global greenhouse gas emissions and developing countries in particular require help to build the necessary capacity to address this challenge. Australia has invested in a number of activities that pursue the goals of reducing emissions from deforestation and forest degradation in developing countries (REDD+). Through the International Forest Carbon Initiative, Australia is working directly with partners in our region, and collaboratively through multilateral institutions, like the World Bank, to contribute to the shared global effort to address deforestation. Through the International Forest Carbon Initiative, Australia supports in-country capacity to implement REDD+, credible systems for MRV and approaches to REDD+ that provide fair and effective benefits for communities. The International Forest Carbon Initiative: is assisting 25 developing countries to develop national REDD+ strategies that show how they will reduce carbon emissions from forests (funded through the World Bank Forest Carbon Partnership Facility) is assisting five developing countries to take practical action to reduce forest emissions, such as through sustainably managing forests and supporting livelihoods for forest communities which do not lead to deforestation (funded through the World Bank Forest Investment Programme) is helping to establish global systems to support countries to measure, report and verify forest cover and carbon emissions supports REDD+ bilaterally through the Indonesia-Australia Forest Carbon Partnership and Papua New Guinea-Australia Forest Carbon Partnership 17

18 is directly supporting countries such as Indonesia and Kenya to establish and operate MRV systems for the land sector is providing support to summarise and disseminate information on forest finance and REDD+ is supporting the Centre for International Forestry Research to show how REDD+ can be implemented in a way that is efficient and equitable and bring benefits to local communities To encourage shared ownership, Australia s fast-start finance investments through the IFCI have responded to country needs and been informed by common approaches and shared expertise identified through bilateral and multilateral partnerships. Case study: Understanding and measuring land sector emissions. South Africa Land Sector MRV Capacity Building Project (A$875,000) South Africa, like Australia, faces huge challenges when it comes to understanding and measuring emissions from its land sector. Drawing on its specialised experience in this area, Australia is supporting the South African government to build its capacity and expertise in the measurement, reporting and verification (MRV) of emissions from the Agriculture, Forestry and Other Land Use (AFOLU) sector. Under the project, South Africa s Department of Environmental Affairs has recruited two new land sector MRV experts who will establish a strategic plan for the development of a comprehensive AFOLU sector MRV system for South Africa. The experts are being supported by an administrative assistant and a research assistant, who are also employed under the project. 5. In-country capacity Countries face a range of challenges in responding to climate change. This often includes a lack of in-country expertise and capacity to implement desired reforms or effectively absorb large climate finance flows. It is important for donors to assist developing countries to establish institutional and technical capacity to enable them to take action and incorporate climate change into long-term development planning. By investing in programs that build in-country capacity, developing countries are empowered to take control of their climate change agendas, while increasing the long-term sustainability of individual projects. During the fast-start period, there was an expectation that large quantities of funds would be disbursed in a short period of time. This resulted in a strong inclination to rely on specialist third parties to carry out climate finance projects. While this can represent the best solution in certain circumstances it should not be at the expense of building in-country capacity. Wherever possible, resources should be allocated to enable developing countries to carry out projects themselves. Taking a longer-term view will ultimately improve the effectiveness and sustainability of climate finance investments. Case study: Building systems for mitigation Low Emission Capacity Building Programme (A$5 million) Robust measurement, reporting and verification (MRV) systems, Nationally Appropriate Mitigation Actions (NAMAs), and Low Emissions Development Strategies (LEDS) are increasingly seen as important preconditions for receiving increased climate finance. However, the capacity for many developing countries to establish and generate these systems and mechanisms remains weak. Through the United Nations Development Programme s (UNDP) Low Emissions Capacity Building Programme, Australia is supporting 25 countries to strengthen their institutional and technical capacity to plan and undertake mitigation actions, through the formulation of LEDS and NAMAs. The Programme is also assisting participants to establish the national greenhouse gas (GHG) inventory and MRV systems required to underpin their mitigation actions. Acknowledging that the responsibility for responding to climate change extends beyond national governments, the Programme is also supporting selected industrial sectors within partner countries to identify appropriate mitigation actions. 18

19 6. Enabling environments and policy levers Effective delivery of public climate finance requires supportive policy and institutional frameworks that will help ensure the success of individual projects and catalyse private investment. Appropriate policies, regulation and governance create conducive enabling environments to support climate-compatible development. Public finance can contribute to strengthening elements of national administration in recipient countries, including the broader institutional architecture and the public financial system. It can also help to remove barriers to investment and improve the risk-reward calculation to make projects more attractive to private investors. Climate finance is well-placed to continue to support developing countries in improving their enabling environments, including policy frameworks, to drive low carbon and climate-resilient growth. For example: supporting regulatory and institutional reforms that cut red tape and encourage competition and innovation supporting institutional capacity-building investing in catalytic infrastructure, including information and communications technology; facilitating dialogue between the public and private sectors providing private sector financiers with advice to give them a better understanding of the risks in conflictaffected and fragile economies Case study: Building capacity for carbon markets World Bank Partnership for Market Readiness (A$12.5 million) Australia is working with other governments through the World Bank Partnership for Market Readiness (PMR) to build the capacity of countries to develop domestic carbon market instruments to scale up emission reduction efforts and support low carbon development. Helping to develop the essential readiness components for these instruments such as data management, measurement, reporting and verification (MRV) systems and the creation of policy and regulatory frameworks is a crucial part of the PMR s work. The PMR, a global partnership of 28 developed and developing countries, has achieved a significant amount since it was established in It has exceeded its target capitalisation of $US100 million and approved funding for countries to develop detailed carbon market plans and work towards implementation of domestic carbon market instruments. In addition to grant funding and in-country expert support, partner countries build capacity by sharing lessons learned in technical workshops, policy dialogues and virtual knowledge platforms as they look to develop new or improve on existing domestic carbon market instruments. Through capacity building for the development of market-based instruments, the PMR is supporting countries to create effective enabling environments for private sector action on climate change. Well-designed carbon market instruments can incentivise private sector actors to change investment and production behaviour to drive low emissions development. PMR countries are encouraged to engage early with private sector actors in developing their carbon market instruments, consistent with domestic circumstances. The PMR has also organised a number of successful dialogues between country representatives and the private sector. Australia co-hosted one such dialogue with the World Bank and the International Emissions Trading Association in These dialogues will continue to be a key contributor to the PMR s success by promoting effective engagement with the private sector to support low emissions development. 7. Collective knowledge Reaching the goal of mobilising US$100 billion in climate finance per year by 2020 requires collective effort. The global nature and urgency of climate change reinforces the need for open and collaborative efforts to reach this goal. Building a bank of shared climate finance knowledge is vital to enable donors to learn from each other to maximise the effectiveness of future investments and for recipient countries to incorporate climate change into their development actions and strategies. Australia s fast-start projects have contributed valuable research, knowledge and data to inform combined efforts in areas such as energy efficiency (see Spotlight on Energy Efficiency p.16), monitoring and compliance systems (see Spotlight on MRV p.22), carbon markets, and low emissions development. Australia s science and adaptation projects in 19

20 the Pacific (see over page) have delivered valuable research and data to vulnerable countries, enabling them to base their adaptation plans and activities on sound science and knowledge of risk. This not only informs current planning and decision-making, but will also be available for future use. Case study: Supporting our Pacific neighbours Pacific Australia Climate Change Science and Adaptation Planning (A$32 million) Pacific countries have a strong awareness and support for adaptation activities. Providing technical support, information and capacity can assist these countries to improve their ability to manage future climate risks. One of three programs delivered under the International Climate Change Adaptation Initiative (ICCAI), the Pacific Australia Climate Change Science and Adaptation Planning program (PACCSAP) is building an adaptation science and research base to assist Pacific countries to better manage future climate risk. Following on from an earlier program, The Pacific Climate Change Science Program (PCCSP), which delivered research and country level climate change projections, 5 the PACCSAP has continued to build the capacity of National Meteorological Services and the science base as well as delivering communication and awareness activities. Strengthening the adaptation science base allows partner countries in the Pacific to reliably identify national climate change priorities, integrate climate change considerations into decision-making, and understand the economic implications of future climate change impacts and adaptation measures. For example, developing damage and loss estimates for the Pacific region from future climate change cyclone projections will help national government better quantify economic risk and develop solutions. Spotlight on Science and Adaption Climate change will push many countries beyond coping thresholds and has significant implications for food, energy and water security. In the medium term, it has the potential to derail progress towards the Millennium Development Goals. In the longer term, it is likely to influence the growth and development trajectories of communities, regions and nations. Without adequate adaptation countries will face significant economic, social and environmental costs. Australia funded the International Climate Change Adaptation Initiative (ICCAI; ) to support vulnerable countries, particularly in the Asia-Pacific region, to adapt to the unavoidable impacts of climate change. The Fourth Assessment Report published by the Intergovernmental Panel on Climate Change revealed a significant gap in our understanding of how the dynamic climate systems in the Pacific might change in the future. 6 The lack of scientific data made it difficult to understand the impacts on the livelihoods of the Pacific Island community. The work undertaken over the past four years through the Pacific Climate Change Science Program (PCCSP), the Pacific Adaptation 5 6 More information can be found at: IPCC AR4 SYR, Pachauri and Reisinger, Climate Change 2007: Synthesis Report, Contribution of Working Groups I, II and III to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC, 2007). 20

21 Strategy Assistance Program (PASAP), and the Pacific-Australia Climate Change Science and Adaptation Planning (PACCSAP) Program has been vital in closing this gap. These programs have engaged Pacific Island country scientists, decision-makers and planners to better understand past and future climate, and to formulate adaptation responses. They reinforce the value of a strong evidence base in climate change science, risk assessment and adaptation planning, to inform national planning priorities and guide decision making Harmonisation In the context of the scaling up of effective climate finance, it is more important than ever for donors to avoid duplication by regularly sharing information and harmonising their investments. Improved donor coordination also increases opportunities for collaboration and allows new projects to build on, or complement, existing investments, maximising the impact and effectiveness of every dollar spent. Climate finance investments should also be aligned with recipient country priorities. Harmonisation with national-level planning increases the likelihood of complementary domestic action being leveraged. Similarly, climate finance investments that address a broader range of recipient needs such as simultaneously addressing climate and development objectives are likely to receive a greater level of in-country support and uptake, increasing effectiveness and sustainability. Case study: Regional cooperation on lighting Lighting Information and Technical Exchange for Standards (A$750,000) Australia supports Lighting Information and Technical Exchange for Standards (lites.asia) - a regional network of lighting efficiency policy makers and regulators promoting regional cooperation on lighting energy efficiency issues. Lites.asia assists partner countries to undertake regulatory and policy reform to support low-emission development and encourage private sector investment through harmonised lighting standards. The overall goal is to make energy efficient lighting products available to all consumers in the Asia-Pacific region. Lites.asia arose out of a meeting in October 2009, when representatives from Australia, China, India, Indonesia, Philippines, Sri Lanka, Thailand, USA and Vietnam met to discuss the potential benefits of regional co-operation on the development of lighting standards. Today over 600 participants from 20 economies actively collaborate on projects, participate in IEC meetings, and share knowledge on local standards and labelling via the internet and in regional meetings. Case study: Integrating national strategies Vietnam Low Carbon Rice Project (A$1.3 million) Australia is assisting rice farmers in the Mekong Delta to change the way they cultivate their rice crops to reduce greenhouse gas emission from rice production, while enhancing yields, creating environmental co-benefits, and providing supplementary income through the international carbon market. Implemented by the Environmental Defense Fund, the objectives of the project align with a number of national strategies, ensuring harmonisation with national-level planning. For example, Vietnam s National Green Growth Strategy outlines a commitment to join international efforts to reduce GHG emissions, recognising that promoting lowcarbon growth also has broader benefits for sustainable development. The project also supports the Vietnamese Governments National Strategic Vision to 2030 for rice production and food security, which recognises the Mekong Delta as crucial to food security, both for Vietnam and the world. Case study: Coordinated systems for reporting MRV Capacity Building Program ($3m) Australia is supporting a range of developing countries in Africa and Asia to build their capacity to understand, quantify and report their greenhouse gas emissions, with a view to establishing robust and transparent national measurement, reporting and verification (MRV) systems. 7 PACCSAP Annual Report (July 2011 June 2012), Lessons Learned to Date, p

22 In designing the program, Australia took account of existing initiatives, such as the UNFCCC Regional MRV program, International Partnership on Mitigation and MRV, and UNDP s Low Emissions Capacity Building Programme. Doing so was important to avoiding duplication, maximising coverage, and focusing Australia s contribution to ensure it has the most impact. As the Program rolls out, Australia will continue to coordinate closely with associated programs and donors to ensure that our investments work in a complementary manner. Spotlight on Measurement, Reporting and Verification (MRV) Measurement, Reporting and Verification (MRV) describes the capacity of a country to measure its greenhouse gas (GHG) emissions, removals and climate action; and present and communicates that information both domestically and internationally. Whether sectoral (as for forestry) or national (as GHG inventories), MRV systems enable countries to participate in mitigation action; to meet international reporting obligations; to enhance national capacity in international meetings; access carbon markets; and harmonise donor and aid programs. By increasing transparency in mitigation, MRV is critical for building the trust necessary to make mitigation pledges. Enhanced MRV programs also improve countries understanding of their emissions profile, and therefore the efficiency of mitigation and adaptation initiatives. Australia has a well-developed national framework and system for the reporting and dissemination of information about greenhouse gas emissions that meet international reporting requirements. This significant experience in MRV can be utilised to assist developing countries to grow their capacities in this area. Australia has supported MRV capacity building with a range of partners, including through: The Indonesian Carbon Accounting and Reporting Model developed in conjunction with the Government of Indonesia UNFCCC Secretariat expert workshops on Forest Reference Levels and Safeguards for REDD+ purchasing, initially processing, archiving and making freely available comprehensive satellite data to Indonesia and acquire data for Timor-Leste, Papua New Guinea, Brunei, the Philippines and parts of Myanmar developing and administering capacity building programs to enhance MRV in developing countries in Africa and Asia for both REDD+ and non-forest MRV establishment funds for start-up support for Global Forests Observations Initiative work streams including in particular the Methods and Guidance Documentation work stream and the coordination of satellite data supply 9. Scaled up and transferable Where possible, activities should be designed so that they can be scaled up or transferred to other applicable settings. This maximises the effectiveness of investments as it allows for economies of scale, and leveraging from previous experience and existing in-country institutional arrangements. Scalable and transferable projects also offer opportunities for other donors to contribute to proven projects, improving the efficiency and effectiveness of climate finance investments more broadly. Case study: Building Upon Success Vietnam Climate Change and Coastal Ecosystems Program (A$9.6m) Since 2008, Australia has partnered with the German and Vietnamese governments to work with communities in Kien Giang, Vietnam to adapt to climate change and improve the management of coastal environments. This has included installing fences to prevent erosion, rehabilitating coastal forests, improving dyke management, and promoting new mangrove planting techniques. Based on the success of the Kien Giang pilot project, Australia invested A$9.6 million of its fast-start finance to support an expanded partnership between Australia and Germany across five provinces in the Mekong Delta, under the Climate Change and Coastal Ecosystems Program. The five year program will be supported by a national component that will promote the sharing of lessons and experiences across provinces to inform a national response to climate change. 22

23 Above: Planting for coastal resilience. Photo: GIZ Conclusion: Capitalising on the fast-start experience Between July 2010 and June 2013, Australia s A$599 million fast-start investment package supported an array of climate change activities, delivering important mitigation and adaptation in developing countries. The package also produced lessons that can serve to inform decisions made regarding future climate finance investments. Australia s fast-start climate finance supported activities in developing countries in areas such as energy efficiency, carbon markets, land sector emissions, and adaptation. Focusing on the most vulnerable countries in key regions like the Pacific, this package of investments has helped strengthen climate resilience and build capacity for low-emissions growth and will continue to deliver results into the future. Australia s fast-start climate finance also served as a valuable pilot program for longer term climate finance, having produced lessons on how best to achieve effective and sustainable climate outcomes. These lessons- such as national ownership, the importance of building collective knowledge, and the benefits of scaling up programs to maximise returns- suggest ways in which future climate finance might be enhanced. There are synergies between the lessons learned through fast-start and development principles, and a number of these themes are also under consideration by the Green Climate Fund Board, of which Australia is currently serving as Co- Chair. While drawn from the Australian experience, these lessons will likely resonate with all stakeholders engaged in climate change investment activities in developing countries. Importantly, Australia s fast-start experience will inform the discussions to shape a new global climate change agreement in For more information on Australia s fast-start climate finance see GLOSSARY AusAID Australian Agency for International Development COP Conference of the Parties (to the UNFCCC) GHG Greenhouse Gas LDCs Least Developed Countries MRV Measurement, Reporting and Verification ODA Official Development Assistance REDD+ Reducing Emissions from Deforestation and forest Degradation SIDS Small Island Developing States UNFCCC United Nations Framework Convention on Climate Change 23

24 B. Canada CANADA S COMMITMENT FULLY DELIVERED Over the last three fiscal years ( to ), Canada has fully delivered on its commitment to provide its fair share of fast-start financing. Over the fast-start period, $1.2 billion in new and additional climate change financing has been issued, with approximately $400 million in each of the three years. Canada s support is producing results across the globe to date, funds have been committed at the project level to the benefit of over 50 developing countries. This support has been delivered primarily through multilateral channels, but also directly to Canada s bilateral partners and in partnership with civil society and the private sector. This report presents an overview of Canada s fast-start financing over the three year fast-start period, including by geographic region, sector and channel, as well as an update on some key initiatives of which Canada is particularly proud. The summary table at the end of this document provides an overview of Canadian fast-start financing issued from FY to FY , including the contributions made in the final year of fast-start financing. Figures in this report are in Canadian dollars (CAD), with the exception of Table 5, which is in U.S. dollars (USD). HIGHLIGHTS SINCE THE LAST REPORT Since the May 2012 report, a number of key initiatives have been identified and funded: $82.4 million through the Asian Development Bank for the mobilization of private climate-change mitigation and adaptation investment in low, lower-middle income countries and small island developing states in Asia. A $75 million investment in the International Finance Corporation Catalyst Fund for climate-friendly venture capital and private equity investment in developing countries. $23.2 million through the Canada Fund for African Climate Resilience, supporting 10 projects across the region that will strengthen food security and promote sustainable growth in 8 African countries. $16.5 million to support adaptation projects in six Least Developed Countries through the Canadian Climate Adaptation Facility at the United Nations Development Programme (UNDP). An additional $10 million to support the reduction of emissions of short-lived climate pollutants in developing countries through the Climate and Clean Air Coalition. $12.6 million for advanced weather systems to help build climate resilience in developing countries, through the World Meteorological Organization, including $6.5 million for Haiti. $2.5 million to the Climate Technology Centre and Network to facilitate technology actions focused on mitigation and adaptation, particularly in developing countries. $2.5 million for low-carbon development in Mexico, in partnership with the UNDP. 24

25 OVERVIEW OF CANADA S FAST-START FINANCING Geographic Distribution The geographic distribution of Canada s faststart financing has been estimated (see Figure 1) but could evolve over the next years as financing that we have provided to multilateral banks rolls out. It is currently estimated that 33% will flow to Latin America and the Caribbean, 24% to sub-saharan Africa, 17% to South Asia, 12% to East Asia and the Pacific, 2% to the Middle East and North Africa, and 2% to developing countries in Central Asia and Eastern Europe. Ten percent (10%) has been allocated to global programs for which it is not possible to estimate a geographic distribution at this time. Over 50 developing countries are benefiting directly from funding delivered through Canada s bilateral channels and Canadian facilities at multilateral institutions, and this number will grow as these facilities continue to make project commitments with available funds. A much larger number of countries will also benefit from contributions made by Canada to multilateral trust funds such as the Global Environment Facility and the Least Developed Country Fund. Countries where Canadian Support is Achieving Results* * This list includes countries that are receiving funds through Canada s bilateral channels as well as from Canadian facilities in multilateral organizations. Recipient countries of multilateral trust funds to which Canada has made contributions that are co-mingled with those of other contributors have not been listed. 25

26 Sectorial Distribution Canada s support is primarily focused on three broad areas: adaptation by the poorest and most vulnerable countries, clean energy, and forests and agriculture. As shown by Figure 2, we currently estimate that 65% of our fast-start financing will support clean energy projects and initiatives, 15% is for adaptation, 11% for forests and agriculture, and 9% for cross-cutting programming. Once again, these estimates could change slightly over time as multilateral institutions roll out our contributions. Delivery Channels Most of Canada s support was channeled through multilateral institutions, given their reach and ability to achieve results in an efficient manner. These organizations are transparent, accountable, and have high fiduciary, social and environmental standards. A significant portion, 59%, was delivered to establish Canadian facilities at multilateral organizations, such as the International Finance Corporation, the Inter-American Development Bank, the Asian Development Bank and the United Nations Development Programme. A further 33% was used for contributions to multilateral trust funds where our support was co-mingled with that of other contributors. Finally, about 8% of our fast-start financing, or over $100 million, was disbursed through Canada s traditional bilateral channels and in partnership with non-governmental organizations. KEY NEW INITIATIVES IN YEAR 3 OF FAST-START FINANCING A number of initiatives and programs were developed and funded since our last report; a few are highlighted below. ADAPTATION BY THE POOREST AND MOST VULNERABLE COUNTRIES Canada is delivering on its promise to scale up support for adaptation by vulnerable countries with new projects launched this year, working through multilateral channels as well as in partnership with non-governmental organizations that make a difference at the community level. Weather Services for Adaptation The ability to track and predict the weather is a key factor in a country s ability to adapt to a changing climate. To this end, Canada has provided $12.6 million to the World Meteorological Organization for projects aimed at enhancing the availability of modern weather services for vulnerable countries. First, Canada has contributed $6.5 million to support work in collaboration with other international partners to rebuild a weather and climate warning service in Haiti following the devastating earthquake of 2010 that destroyed this capability. The funding will contribute to establishing the physical and technical infrastructure needed for an effective early-warning system, such as weather and climate monitoring sites, data management systems, and the building and 26

27 equipment necessary to house the service. A key aspect of the project will be to provide training so that Haitians can manage and deliver the meteorological services to their citizens on a sustainable basis. Second, Canada contributed $6.2 million for the Global Framework for Climate Services, which aims to enhance resilience in social, economic and environmental systems to climate variability and climate change. A key element of the Framework is the development of effective regional and national services in the most vulnerable regions and countries of the world. Canada s support will help develop and deliver regionally tailored climate information products, including an improved early-warning system for severe weather for the South West Pacific and for the Caribbean, and improved coastal inundation forecasting systems in the Dominican Republic as an extension of the project in Haiti. Canadian Climate Adaptation Facility at the United Nations Development Programme Canada and the United Nations Development Programme worked collaboratively to establish the Canadian Climate Adaptation Facility (CCAF), which will help local populations to build more resilient agricultural practices, strengthen their infrastructure, diversify their sources of livelihood and improve their food security. The $16.5 million Canadian facility at the UNDP is focusing on the poorest and most vulnerable populations in six countries in Africa, South East Asia and the Caribbean. Supported projects will build on and enhance ongoing Least Developed Countries Fund initiatives, to which Canada provided $20 million of fast-start grant support in the first year of fast-start financing. More concretely, the CCAF will provide support for a broad range of adaptation and capacity-building projects, including: In Cambodia, the CCAF will provide $2.2 million to reduce the vulnerability of the agricultural sector to climate-induced changes in water resources availability. This project will be implemented in partnership with the Cambodian Ministry of Agriculture, Fisheries and Forestry, the Ministry of Water Resource and Meteorology, and the Ministry of Women s Affairs. In Haiti, $3 million will support the National Committee for Large Public Infrastructure and Projects in strengthening the country s adaptive capacities to address climate change threats for coastal communities and to mainstream climate change adaptation policies into local and national development plans. The CCAF will provide $3.1 million to the Sudanese Ministry of Finance for the implementation of an urgent set of measures that will minimize and reverse food insecurity and enhance the adaptive capacity of small-scale farmers to the adverse impacts of climate change. Table 1 below presents a summary of projects that will be implemented by the CCAF. Table 1 Canadian Climate Adaptation Facility at the United Nations Development Programme 16.50M Country Project Description $M (CAD) Cambodia Reducing the vulnerability of Cambodia s agricultural sector to climate-induced changes in water resources availability 2.24 Cape Verde Building adaptive capacity and resilience to climate change in the water sector in Cape Verde 1.98 Haiti Strengthening adaptive capacities to address climate change threats on sustainable development strategies for coastal communities in Haiti 2.97 Mali Enhancing adaptive capacity and resilience to climate change in the agriculture sector in Mali 2.14 Niger Implementing national adaptation programs of action priority interventions to build resilience and adaptive capacity of the agriculture sector to climate change in Niger 2.64 Sudan Implementing priority adaptation measures to build resilience of rain-fed farmer and pastoral communities of Sudan, especially women-headed households to the adverse impacts of climate 3.08 change Global Program support 1.44 Canada Fund for African Climate Resilience The Canadian International Development Agency (CIDA) is delivering $23.2 million to substantially improve and increase food security and economic growth in Africa by reducing the impacts of climate change through adaptation measures. The support, focusing on projects in eight countries, including Burkina Faso, Cameroon, Democratic 27

28 Republic of Congo, Ghana, Ethiopia, Rwanda, Senegal and Tanzania, will prevent or reduce the impact of climate change on future economic growth and food security in these countries. These projects are being implemented in partnership with a number of Canadian civil society organizations and educational institutions to leverage the development expertise, caring and initiative of Canadians and their international partners. For example: In Senegal, $3 million will be delivered in partnership with the Cégep de la Gaspésie et des Îles in Canada to help three villages to adapt to lower levels of precipitation in the Saloum Islands over the last 35 years. This initiative seeks to ensure sustainable utilization and marketing of ecosystem-dependent shellfish and fish stocks to give local populations the opportunity to improve their economy, ensure access to sufficient, safe and nutritious food, and enhance the role and position of women in local communities. The project also seeks to ensure the transfer of skills and expertise to direct beneficiaries and other stakeholders. In northern Ghana, $2.1 million is being delivered in partnership with CHF (formerly known as the Canadian Hunger Foundation) to target men and women in vulnerable households in 4 districts and 20 communities, where most farmers depend on rain-fed agriculture and have very limited access to reliable weather forecasts and early warning of disasters, and as such are highly vulnerable to climate change. Table 2 below presents a summary of projects that will be implemented through the Fund. Table 2 Canada Fund for African Climate Resilience 23.2M Country Implementing $M Project Description Partner (CAD) Union des Burkina producteurs Faso agricoles Improving food security through the sustainable development of agriculture 2.50 Increasing the access to sufficient, nutritious and safe food and the economic wellbeing Cameroon CUSO International of producers in the model forests of Campo-Ma an and of Dja and Mpomo, and improving climate resilience capacities 2.72 Democratic Republic of Congo Ethiopia Ethiopia Ghana Ghana Rwanda Senegal Tanzania University of Guelph Canadian Cooperative Association Canadian Hunger Foundation Canadian Feed the Children CHF (Formerly known as Canadian Hunger Foundation) Adventist Development and Relief Agency Cégep de la Gaspésie et des Îles World Vision Canada Reducing poverty and increasing food self-sufficiency in the Democratic Republic of the Congo by increasing the production of renewable charcoal (makala) on farms that interplant acacia trees with cassava and corn Increasing economic, social and ecological resilience of smallholder Ethiopian farmers to climate change Increasing the food security of 4660 households and their ability to adapt to the impacts of climate change in Ethiopia s Bati district Implementing measures to ensure sustainable access to food and livelihoods 2.08 Increasing resilience of the vulnerable households to climate change in targeted communities in Northern Ghana through improved access to sufficient, nutritious and safe food and sustainable economic development. Increasing access to sufficient, nutritious and safe food among those most vulnerable to climate change in the refugee/returnee areas of the Gatsibo and Kayonza districts in Rwanda Reducing poverty among the people of Senegal s Saloum Islands by improving the ability of three villages to adapt to climate change Improving market-led agricultural production and market and processing knowledge in the Kilimanjaro Region in Tanzania For more information on the Fund, please consult CIDA s Web page on the Fund. Protected Areas as Natural Solutions for Climate Change Adaptation in Kenya and the Americas National parks and other protected areas play an important role in the global response to climate change. Well-managed national parks and other protected areas are part of the natural solutions to climate change challenges through their role in enhancing the resilience of ecosystems and human communities, providing vital services like clean drinking water,

29 reducing the effects of natural disasters like droughts and floods, and generating billions of dollars in tourism revenues. National parks and other protected areas can also help to reduce the amount of greenhouse gases in the atmosphere by protecting carbon that is stored in trees, grasslands, soils and marine systems. Parks Canada, Canada s national parks agency, is delivering $3.3 million to build capacities in the restoration and conservation of important ecosystems in Kenya, Chile, Colombia and Mexico. This program is helping protected-areas agencies to address adaptation to climate change and implement on-the-ground projects in national parks and other protected areas that increase the resilience of ecosystems and of the human communities that depend on them. In Kenya, greenhouses and modernized tree nurseries have been installed and are providing plants for restoring forests in Amboseli, Tsavo (East and West) and Aberdare National Parks. Communities are engaged in developing and implementing tree nursery and planting programs in Mount Kenya National Park. Invasivespecies removal is underway in several parks, and work is being completed on an alternative wildlife watering station in Tsavo West National Park to protect Mzima Springs, a major drinking-water source for downstream communities. In Chile, protocols for growing and planting seedlings for the ecological restoration of Torres del Paine National Park following a catastrophic 2011 fire have been initiated. Studies are being conducted to understand wetland processes and functions to be restored in order to protect water resources in wetland complexes of Nevado Tres Cruces National Park and El Yali National Reserve. In Mexico, work is underway to determine vulnerabilities of protected-area ecosystems to climate change, identify priority conservation targets, and undertake on-the-ground adaptation actions in protected areas in the Northeast and Eastern Sierra Madre Region, one of the driest and most vulnerable areas of the country. In Colombia, work has begun on updating management plans for 25 protected areas to strengthen the value of these sites in helping Colombia adapt to the impacts of climate change. Ecological restoration activities will be initiated in six parks to help reduce the vulnerability to climate change of ecosystems and associated human populations. This program builds upon Canada s efforts to implement ecosystem-based approaches to climate change adaptation as an important component of domestic and international adaptation policies, programs and strategies. MOBILIZING PRIVATE SECTOR INVESTMENT AND DEPLOYING CLEAN TECHNOLOGY In the final year of fast-start financing, Canada has worked collaboratively with a number of multilateral organizations to diversify its provision of support that aims to scale up the mobilization of private sector investment in climatefriendly sectors in developing countries. Although much of this support will likely result in clean energy investment, other mitigation-related sectors are likely to benefit, as will projects that build climate resilience. Supporting the Start-up of the Climate Technology Centre and Network Canada is committed to advancing the implementation of the Cancun Agreements, including the development and deployment of technology, to be encouraged through the Climate Technology Centre and Network (CTCN). The CTCN will provide tailored advice and technical assistance to developing countries to support the implementation of technology actions for mitigation or adaptation objectives. Canada s $2.5 million contribution will support start-up costs of the Centre as well as specific capacity-building activities, and facilitate private sector engagement, given its important role in the technology transfer process. The Centre will be operational by the end of Canada is proud to be one of the first major contributors to the CTCN and hold a seat on its Advisory Board, reflecting our continued engagement in technology-related work under the United Nations Framework Convention on Climate Change. Operationalizing the CTCN will be a concrete example of practical action being taken to help countries mitigate and adapt to climate change. 29

30 International Finance Corporation Catalyst Fund Canada made a $75 million contribution to International Finance Corporation s Catalyst Fund, which will invest in venture capital and private equity in developing countries, with a focus on sectors where there are opportunities to promote efficient use of resources such as energy and water as a way to mitigate and adapt to climate change. With the dynamic economic growth in emerging markets increasing the demand for resources, there is an opportunity for innovative projects and business models to address a portion of the gap between supply and demand. The Catalyst Fund is expected to fill a key niche in this regard: private-equity and venture-capital funds are uniquely positioned to finance climate-related investment because they can support innovative projects implemented by early-stage companies. The Fund is expected to deliver sustainable development impacts through stimulating investment and growth in key sectors such as renewable energy, energy efficiency, water, agriculture and forestry. Canada is now one of the anchor investors in the Fund, which is aiming to raise up to $500 million from both public and private investors. Climate Fund for the Private Sector in Asia at the Asian Development Bank Canada also made a significant contribution to the Asian Development Bank (ADB) to help catalyze private investment in climate change projects in low and lower-middle income countries and small island developing states in Asia. A total of $82.4 million was provided to the ADB, including $75 million for concessional financing for projects as well as $7.4 million of grant financing for use as technical assistance to support the objectives of the Fund. The Fund aims to play a key role in overcoming leading-edge technology risks and cost hurdles in order to spark and scale-up projects to reduce emissions and increase climate resilience. Projects funded will focus primarily on renewable energy, energy efficiency, urban infrastructure and sustainable transportation projects, greenhouse gas emission reduction and abatement projects, as well as projects associated with adapting to climate change vulnerabilities. Canada s contribution is expected to enhance the ADB s capacity to mobilize private finance to address climate change. UPDATES ON KEY INITIATIVES International Development Research Centre Partnering with More Than 20 Institutions Across the World Through the International Development Research Centre, Canada has provided $35.5 million to support research on how best to adapt to the impacts of climate change in Africa, Asia, and Latin America and the Caribbean. In Asia and Latin America and the Caribbean, research will contribute to solutions for managing the water-related impacts of climate change such as flooding, melting glaciers, rising sea-levels, and more frequent and intense storms. In Africa, researchers are investigating population health vulnerabilities to vector-borne diseases, looking at how to manage scarce water resources to safeguard agricultural production, and assessing the feasibility of different adaptation strategies to inform African governments responses to climate change. For example, in Burkina Faso, the Institut International d Ingénierie de l Eau et de l Environnement (2iE) is exploring water conservation strategies to cope with climate change. Increasingly, Burkinabe farmers face longer and more frequent periods of drought. To address this challenge to agricultural production and food security, low-cost reservoirs have been constructed adjacent to farmers fields in two pilot communities to capture rainwater that can be used to irrigate crops. In addition to testing this irrigation strategy, 2iE is also training 200 farmers on how to access improved weather information to help them plan seed sowing and manage irrigation under increasingly uncertain conditions. So far, the project has achieved the following results: The first two of three years of pilot tests in the region of Yatenga and Bam have demonstrated that the water reservoirs can extend the growing season by up to six weeks and boost the yield of key staple foods like maize and sorghum by as much as 20%. After the interest raised by the project, the government of Burkina Faso through the Ministry of Water and Agriculture has been promoting a first country-wide initiative on rain water harvesting with a cash-for-work 30

31 program aiming to build collection basins by the end of To date, nearly basins have already been built. Table 3 below presents a breakdown of the projects that are being implemented with these funds. Table 3 International Development Research Centre Adaptation Projects in Africa, Asia, and Latin America and the Caribbean 35.30M Country of Study Implementing Partners Description $M (CAD) Africa, Latin America/Caribbean and Asia International Development Research Centre Program support (launch costs, communications, research information services to the 19 partners, institutional risk assessments, economic analysis training, adaptation finance consultancy) 2.59 Africa Benin Initiatives pour un Développement Intégré Durable Strengthening economic skills and climate change adaptive capacity in Benin 0.78 Burkina Faso Institut International d Ingénierie de l Eau et de l Environnement Irrigation and climate information in Burkina Faso 1.28 Egypt University of Alexandria Establishing the Alexandria Research Centre for Adaptation to Climate Change 1.16 Ethiopia World Health Organization Reduce population health vulnerability and increase resilience to vector-borne tropical diseases 7.34 Ethiopia, Kenya, Sudan, Tanzania Sokoine University of Agriculture, Tanzania Enhancing climate change adaptation in agriculture and water resources in the Greater Horn of Africa 1.34 Ghana Regional Institute for Population Studies, University of Ghana Climate change adaptation research and capacity development in Ghana 1.40 Kenya Kenya Agricultural Research Institute Enhancing climate change adaptation research capacity in Kenya's agriculture sector 1.12 Lesotho, Malawi, Swaziland Food, Agriculture and Natural Resources Policy Analysis Network, South Africa From research to policy: linking climate change adaptation to sustainable agriculture in southern Africa 1.50 Asia Cambodia Cambodia Development Resource Institute Improving water governance and climate change adaptation in Cambodia 1.50 China Chinese Center for Agricultural Policy, Chinese Academy of Sciences Water resources and adaptation to climate change in North China Plains and Poyang Lake Region in China 1.50 China, Nepal, Pakistan Kunming Institute of Botany of the Chinese Academy of Sciences, China Building effective water governance in the Asian Highlands 1.53 India Ashoka Trust for Research in Ecology and the Environment Adapting to climate change in urbanizing watersheds 1.50 Thailand Faculty of Social Science, Chiang Inland aquaculture and adaptation to climate

32 Table 3 International Development Research Centre Adaptation Projects in Africa, Asia, and Latin America and the Caribbean 35.30M Thailand Mai University Thailand Development Research Institute change in northern Thailand Improving flood management planning in Thailand 1.43 Latin America and the Caribbean Argentina Fundación Bariloche Adapting to water stress in Comahue Region of Argentina 1.26 Barbados, Trinidad and Tobago, Jamaica, Guyana, Grenada University of the West Indies, Barbados Sustainable water management under climate change in small island states of the Caribbean 1.50 Bolivia Agua Sustentable Strengthening local capacity for adaptation to climate change in the Bolivian Altiplano 1.08 Chile Centro de Cambio Global, Pontificia Universidad Católica de Chile Vulnerability and adaptation to climate variability and change in the Maipo Basin, central Chile 1.30 Costa Rica, Guatemala, Nicaragua Centro Agronómico Tropical de Investigación y Enseñanza, Costa Rica Adapting community-based water supply in Central America to a changing climate 1.48 Dominican Republic, Guatemala Centro del Agua del Trópico Húmedo para América Latina y el Caribe, Panamá Water security and climate change in Central America and the Caribbean 1.49 Support for Nationally Appropriate Mitigation Action Development For year 2 and 3 of the fast-start financing period, Environment Canada provided over $9 million to support sector by sector mitigation projects in Africa and Latin America and the Caribbean. While reinforcing our existing bilateral partnerships, these innovative projects provided an opportunity for developing countries to develop and adopt climate mitigation actions appropriate to their own circumstances. For example: $3.5 million was disbursed to support Mexico, Costa Rica and Peru in developing an approach to implement nationally appropriate mitigation actions in the housing sector. A series of innovative country-specific mitigation actions and efforts to enhance stakeholders participation and mobilize private-sector investments were developed. The low-carbon housing roadmaps are now under consideration and implementation in these countries. Canada provided $2.6 million to support Mexico, Colombia, Chile and the Dominican Republic in the development and implementation of mitigation actions in the solid waste sector, with capacity building, feasibility studies and pilot projects. Once fully implemented, greenhouse gas emissions especially shortlived climate pollutants such as methane and black carbon will be significantly reduced. 32

33 Table 4 below provides a full list of projects that were implemented by Environment Canada and its implementing partners over the last two fiscal years. Table 4 Environment Canada Sector by Sector Mitigation Projects 9.83M Country Description Implementing Partner $M (CAD) Costa Rica, Peru, Mexico Providing technical advice to countries to help them flesh out implementable mitigation actions in the Housing sector Energy Efficiency Exporters Alliance 3.50 Colombia, Mexico Providing technical advice to countries to help them flesh out implementable mitigation actions in the Oil and Gas sector, including actions that will significantly reduce emissions of short-lived climate pollutants, notably black carbon and methane Petroleum Technology Alliance Canada 3.00 Chile, Colombia, Mexico, Dominican Republic Supporting the development of policy frameworks and projects for waste management, including a series of measures for the whole waste stream that will reduce emissions of short-lived climate pollutants such as black carbon and methane Center for Clean Air Policy 2.55 Congo Basin Region Capacity building in 10 countries located in the Congo Basin Region to help identify and develop Nationally Appropriate Mitigation Actions International Institute for Sustainable Development 0.78 Mobilizing Private Sector Investment A large portion of our fast-start financing was provided to multilateral organizations such as the International Finance Corporation (IFC), the Inter-American Development Bank (IDB) and the Asian Development Bank (ADB) for the establishment of Canadian facilities targeting the mobilization of private-sector investment in climate-friendly sectors in developing countries. The first two facilities, at the IFC and IDB, have begun programming, whereas the newest facility, at the ADB, is being operationalized. Projects supported by these Canadian facilities are expected to generate significant environmental benefits and contributed to leveraging investment from the public and private sectors. To date, approximately $95 million of Canadian funding has been approved, which is helping to mobilize over $822 million of public and private sector investment and contributing to achieving annual greenhouse gas emission reductions of over metric tons of CO 2 equivalent. These facilities achieve an incremental benefit by providing support to projects with measurable, positive climate impacts that require some financing on concessional terms to be viable. An example of a project supported in the past year illustrates how public funds can leverage private financing to advance climate goals. In March 2013, the IDB approved a loan package of $41.4 million, including $20.7 million from the Canadian Climate Fund for the Private Sector in the Americas, for the construction, operation and maintenance of three photovoltaic solar power plants in the Atacama Desert in northern Chile. The total project cost will be approximately US$84 million, with a mix of public and private sector funding making up the balance of the investment. With a capacity of 26.5 megawatts, the three plants are the first large-scale solar plants in Chile. Currently, Chile relies heavily on imported fuels, which represent the majority percentage of its energy consumption. Through this project, Chile will enhance its energy security and demonstrate that solar energy can, in a clean and affordable way, help meet demand from the Chilean mining industry, which currently accounts for a significant portion of total energy consumption and economic output in Chile. 33

34 The project is expected to prevent the release of tons of CO 2 each year, for a total of more than a million tons for the duration of the loans. Table 5 below presents a breakdown of projects supported by Canadian facilities in Multilateral Development Banks. Table 5 Mobilizing Private Sector Investment Funds Approved by Canadian Facilities at Multilateral Development Banks to Date Project Location Description Expected Emissions Reduction (metric tons/year) Total Project Cost $M (USD) Approved Canadian Contribution $M (USD) IFC-Canada Climate Change Program $271.00M Albania Albania s Credins Bank Development of a sustainable energy financing business Armenia HSBC Development of sustainable energy financing business Ghana TICO Conversion of and efficiency improvements to the existing Takoradi power plant, resulting in a significant increase in power generation capacity with lower greenhouse gas emissions Honduras Atlantida Loan Loans to sustainable energy activities India Dewan Housing Finance Supporting green mortgages for affordable housing Kenya Housing Finance Bank Support property development finance business, with incentives to develop a green housing portfolio Mexico Urbi Verde Installation of solar photovoltaic technology in energyefficient low-income housing South Africa SasFin Support for small and medium enterprise energy-efficiency and renewable energy lending in South Africa; eligible transactions include energy efficiency, renewable energy and cleaner production projects that result in material improvement in energy use by small and medium enterprise companies IFC-Canada Climate Change Program Advisory Services $5.83M 1 Albania Brazil Guinea- Bissau Honduras Albania Solid Waste Advisory Services to the Municipality of Tirana) in structuring and implementing a PPP transaction for the purpose of managing municipal solid waste. Pro-Hotels Program Advisory services to develop the market for energy efficiency services in Brazil s growing hospitality industry Electricidade e Aguas de Guinea-Bissau Encouraging privatesector investment to reduce technical energy losses in the stateowned power and water facility Bancatlan Sustainable Energy Finance Advisory services to identify, analyze and finance sustainable energy projects N/A With the exception of the Albania solid waste project, Indonesia biomass project, Lesotho wind project and Uganda electricity project, estimates for advisory services are not based on the latest IFC methodology for advisory services that have been recently revised and agreed to. 2 GHG emissions reduction targets are preliminary and subject to revisions once the project due diligence phase is completed. 3 This Advisory Services project is part of the $50 million investment program to support Banco Atlantida in Honduras. The expected emissions reduction is included within the metric tons per year expected for the Banco Atlantida loan project. 34

35 Table 5 Mobilizing Private Sector Investment Funds Approved by Canadian Facilities at Multilateral Development Banks to Date Indonesia Indonesia Biomass Advisory services to help Indonesia s stateowned power utility select a developer to finance, build and operate 20 megawatts of biomass power plants Lesotho Lesotho Wind Power Conducting an 18-month feasibility study for the development of 2 potential wind power projects, with a combined potential of 900 megawatts Thailand Thailand Clean Energy Advisory services to develop clean energy projects Uganda Uganda Electricity Generation Company Advisory services to conduct a bidding process to build the Nyagak small hydropower plant in the rural West Nile region of Uganda Canadian Climate Fund for the Private Sector in the Americas at the Inter-American Development Bank $250.00M Chile Supporting three private-sector photovoltaic solar energy projects in Chile, in the Atacama Desert Peru Supporting Universidad San Ignacio de Loyola to expand and upgrade its infrastructure using green technology that permits the reduction of water and energy consumption Total WHAT IS NEXT FOR CANADA? As highlighted in this report, Canada is very proud to have fully delivered on its commitment to provide its fair share of fast-start financing. Our contribution to and collaboration with bilateral, multilateral, private sector and nongovernmental partners are generating significant environmental benefits and are paving the way for continued progress under the United Nations Framework Convention on Climate Change. As funds continue to be allocated at the project level by Canadian facilities at the IFC, IDB and ADB, mobilizing additional public and private finance, we expect significant additional investments to be made with both adaptation and mitigation benefits. We will continue to monitor and report on the distribution of funds, in line with the reporting timetables agreed under the Convention, as well as on the Government of Canada s climate change Web page. Monitoring the result of the investments made is critical for drawing lessons from our financing experiences, including fast-start, and to build on effective approaches to mobilize private finance in support of developing-country actions and targets. In doing so, we are working in collaboration with other countries, multilateral institutions and the private sector to identify best practices that can be built upon, catalogue barriers that we could address, and consider opportunities for strengthening the mobilization of financing for climate-friendly projects. For example, through the Organisation for Economic Co-operation and Development, we are already collaborating on clarifying issues relating to the tracking of private climate finance and the results of our efforts to mobilize it. Finally, we remain committed to the goal of jointly mobilizing $100 billion per year by 2020 to address the needs of developing countries, in the context of meaningful mitigation actions and transparency on implementation, and we look forward to working with our partners in this regard. For more information on Canada s fast-start financing, visit 35

36 36 Summary Table Overview of Canadian Fast-Start Financing FY to FY Mobilizing Private Sector Investments International Finance Corporation (IFC) Established in FY $M (CAD) Promoting private-sector financing in developing countries, including grant and concessional financing for innovative projects and investing in venture capital and private equity for sustainable growth Facility Funding Approved to date IFC-Canada Climate Change Program Advisory Services Established in FY Catalyst Fund Inter-American Development Bank Established in FY Asian Development Bank Established in FY Clean Technology Fund (CTF) Contributed in FY and FY Supporting private-sector climate mitigation and adaptation projects in Latin America and the Caribbean Facility Funding Approved to date Canadian Climate Fund for the Private Sector in the Americas Catalyzing private investment in climate change projects in low and lower-middle income countries and small island developing states in Asia Facility Funding Approved to date Canadian Climate Fund for the Private Sector in Asia Grant portion for technical assistance for project preparation and/or enabling environment projects Supporting scaled-up financing for the demonstration, deployment and transfer of low-carbon technologies The CTF Trust Fund Committee committed these and other recent contributions to the investment plans of Chile, India and Nigeria. Final disbursements of resources to these and other plans will depend on the roll-out of the CTF project pipeline Funding Approved to date FCCC/CP/2013/INF.1 4 Reported on an issuance basis. 5 The initial commitment to the IFC-Canada Climate Change Program in FY was $ million. In FY , $75 million was transferred to the Catalyst Fund and $60.28 million of new fast-start resources were contributed. These transactions resulted in a final funding level of $271M for the IFC-Canada Climate Change Program, not including the $75M transferred to the Catalyst Fund. 6 Total Canadian contribution to the Fund is $75M, transferred from the IFC-Canada Climate Change Program as described in footnote [4] above.

37 Summary Table Overview of Canadian Fast-Start Financing FY to FY Grant Financing Region Description Implementing Partner Clean Energy Africa, Latin America and the Caribbean Technical assistance for the development of nationally appropriate mitigation actions. Please see Table 5 for a detailed project breakdown. Global Supporting the implementation of projects that will reduce the emissions of short-lived climate pollutants in developing countries Global Supporting the deployment of clean cookstoves. This fast-start contribution was part of a $1.9M total contribution, with $100,000 issued from other grant resources. Adaptation by the Poorest and Most Vulnerable Countries Africa Africa Africa, Cambodia, Haiti Asia, Latin America and the Caribbean Supporting climate change adaptation research centres and reducing population health vulnerability. Please see Table 4 for a detailed breakdown of projects supported from FY to FY Supporting projects that will advance food security and promote sustainable economic growth in African countries through the Canada Fund for African Climate Resilience. Please see Table 3 for a detailed project breakdown. Helping local populations build more resilient agricultural practices, strengthen their infrastructure and diversify their sources of livelihood. Please see Table 2 for a detailed project breakdown. Supporting research to inform the design and implementation of effective adaptation strategies. Please see Table 2 for a detailed breakdown of projects supported from FY to FY Environment Canada 9.83 Climate and Clean Air Coalition Global Alliance for Clean Cookstoves World Health Organization and International Development Research Centre Canadian International Development Agency United Nations Development Programme International Development Research Centre Contributio n ($M) FCCC/CP/2013/INF.1

38 38 Summary Table Overview of Canadian Fast-Start Financing FY to FY Chile, Colombia, Building the capacity of protected-area agencies to enhance the resilience to climate change of ecosystems Kenya, and local communities that depend on them Mexico Improving food security and resilience to climate change in local communities in Ethiopia. Combined with Ethiopia $8M from other international assistance resources, for a $15M total contribution to the World Food Program. Parks Canada Protected Areas in Kenya and the Americas World Food Programme FCCC/CP/2013/INF.1 Haiti Improving access to climate information to guide development efforts in disaster risk management, agriculture, management and conservation of natural resources, and infrastructure development World Meteorological Organization 6.50 Haiti Global Global Global Global Supporting the improvement of local response to climate change impacts, and reducing vulnerability to natural disasters. This contribution was combined with $400,000 from other international assistance resources, for a $4.9M total contribution. Supporting the preparation and implementation of National Adaptation Programmes of Action on Climate Change in Least Developed Countries Increasing climate resilience among small-scale agricultural producers Building resilience to climate variability and climate change through development of regional and national frameworks for climate services Small-scale adaptation and capacity-building projects Forests and Agriculture Congo Basin Region Helping local communities in forest zones to secure sustainable livelihoods and deforestation Congo Basin Implementing sustainable forest management projects and promoting the conservation of Congo Basin forest Region resources Global Addressing deforestation and forest degradation in developing countries through a $5M contribution to the Carbon Fund and a $40M contribution to the Readiness Fund Oxfam Québec, United Nations Development Programme, Centre for International Studies and Cooperation Least Developed Countries Fund International Fund for Agricultural Development World Meteorological Organization Environment Canada and various partners Congo Basin Forest Fund Congo Basin Forest Partnership Forest Carbon Partnership Facility

39 Summary Table Overview of Canadian Fast-Start Financing FY to FY Global Supporting capacity building and demonstrating projects to effectively sequester/conserve carbon in forest and agro-ecosystems BioCarbon Plus Fund 4.50 Cross-Cutting Vietnam Mexico Global Global Global Supporting the implementation of the National Target Program on climate change. This contribution was combined with $1.45M from other international assistance resources, for a $4.45M total contribution to the Government of Vietnam. Supporting Mexico in the development of policies and programs for low-carbon and sustainable development Supporting start-up costs and capacity-building activities, including adaptation Supporting United Nations Framework Convention on Climate Change (UNFCCC) activities Incremental portion of Canada s annual contribution to the Global Environment Facility (GEF) during the fast-start period. $18.5M in each of the three years of fast-start financing used for the incremental portion of annual payments for Canada s contribution to the 5th Replenishment of the GEF ( ), which is a total of $238M, representing a more than 50% increase over the 4th Replenishment. National Target Program on Climate Change United Nations Development Programme Climate Technology Centre and Network UNFCCC Supplementary Fund UNFCCC Trust Fund for Participation Global Environment Facility Grand Total FCCC/CP/2013/INF.1 39

40 C. Iceland Iceland s Fast Start Finance Status August 2013 Iceland is pleased to submit the information below on actual disbursements of Fast Start Finance in 2011 and Iceland is committed to assist developing countries adapt and mitigate the adverse effects of climate change. In 2010 the Government of Iceland decided to commit 1 million US dollars to Fast Start Financing to be disbursed in 2011 and The contribution was new and additional to existing ODA, and for this reason a separate item was included on environmental and climate change matters in international development cooperation in the State budget as of Iceland s Fast Start Finance is divided between adaptation, mitigation and capacity building, and gives special attention to women s empowerment in the field of climate change and increasing access to renewable energy sources. The funding is on grant basis and is divided between multilateral and bilateral assistance. Focus is given to Iceland s bilateral partners countries, which are all among the LDCs. In June 2011, the Icelandic parliament adopted a parliamentary resolution on a Strategy for Iceland s Development Cooperation The Strategy was reaffirmed by the parliament in March 2013, and extended to The Strategy is based on a holistic approach to development policy, and accordingly covers multilateral and bilateral cooperation, humanitarian assistance and peace-building efforts. The Strategy also identifies international development cooperation as one of the key pillars of Iceland s foreign policy. The Strategy introduces time-bound targets to reach the 0.7% target within the next 8 years. It lays out a gradual increase in ODA levels, with the aim of reaching 0.5% in 2017, but in 2011 and 2012 the ODA level amounted to 0.21%. One of the priority areas in the new strategy is environmental sustainability which has been identified as a cross-cutting theme. As a part of this priority area, climate change related development efforts will play an increasingly important role. Accordingly, in % of Iceland s total ODA or 7,6 million US dollars had mitigation or adaption to climate change as a significant or primary objective. Thereof 3 million US dollars were allocated to projects with adaptation objectives only, 0,8 m for mitigation objectives only and 3,8 m for projects with both mitigation and adaptation to climate change as a significant or primary objective. Iceland will continue to support adaptation and mitigation efforts in developing countries after the Fast Start Finance period, and in 2013 allocations to climate change related development efforts from the separate budget item, mentioned previously, will increase by 34%. That excludes several projects directly or indirectly related to climate change, such as a large project on geothermal exploration and development in East Africa. Allocations in 2011 Iceland supported four different projects as a part of its Fast Start Finance allocation in 2011: Programme or Project title UNFCCC Least Developed Countries Fund Addressing the Gender Dimensions of Climate Change on Fisheries Sector Livelihoods Interventions The Women s Delegate Fund Thematic area Beneficiary Country / Region Partner(s) Amount of contribution Adaptation LDCs UNFCCC / GEF 133,500 USD Capacity Building Capacity building Malawi, Mozambique, Uganda Developing countries FAO, The Gender Equality Studies and Training Programme (GEST), ICEIDA and UNU Fisheries Training Programme Women s Environment and Development Organisation (WEDO) 150,000 USD 40,000 USD 40

41 Programme or Project title Gender Sensitive Climate Change Mitigation and Adaptation in Uganda Thematic area Capacity building Beneficiary Country / Region Uganda Partner(s) ICEIDA, GEST, Embassies of Norway and Denmark in Uganda, Ugandan government Amount of contribution 26,500 USD Allocations in 2012 Iceland supported four different projects as a part of its Fast Start Finance allocation in 2012, two of which had also been supported in 2011: Programme or Project title Fund for Climate Change Agenda Support UNFCCC Least Developed Countries Fund The Women s Delegate Fund Geothermal Energy Initiative in Latin America Thematic area Capacity building Beneficiary Country / Region Developing countries Partner(s) UN Women Amount of contribution 150,000 USD Adaptation LDCs UNFCCC / GEF 150,000 USD Capacity building Mitigation Developing countries Latin America and the Caribbean Women s Environment and Development Organisation (WEDO) IRENA 50,000 USD 300,000 USD 41

42 D. Ireland and the European Commission on behalf of the European Union and its member states SUBMISSION BY IRELAND AND THE EUROPEAN COMMISSION ON BEHALF OF THE EUROPEAN UNION AND ITS MEMBER STATES i Dublin, 29 May 2013 Subject: Key Messages EU FAST START FINANCE REPORT In accordance with developed countries commitments under the Copenhagen Accord, the EU and its Member States have mobilised in total 7.34 billion (USD 9.79 billion) and thus has fulfilled its commitment to provide 7.2 billion cumulatively over the period The funds committed in 2012 to date are 2.67 billion. Considering the economic and fiscal challenges we are faced with, this demonstrates our strong commitment to deliver on the Cancun agreement and to the G20 commitment to fight climate change. The swift and effective implementation of EU fast start finance is enabling developing countries: - to better protect themselves against severe weather events and other adverse effects of climate change, including by promoting national adaptation planning, and funding for science and analysis to support decision making; - to grow and develop on a sustainable low carbon path, including through supporting projects on low carbon energy, energy efficiency and low carbon transport; - to protect forests while also supporting economic development; - to prepare for the effective and efficient implementation of a new climate regime and scaled-up financial flows in the longer term. Most EU fast start finance is provided through Member State budgets and is allocated on the basis of national decisions. Despite the difficult economic situation and strong budgetary constraints, all 27 Member States and the European Commission have contributed to this funding. Member States fast start contributions are voluntary and not based on any distribution key. They do not prejudge any burden sharing for future global climate financing. Transparency in the delivery of fast start pledges is vital and the EU regularly submitted comprehensive and transparent reports to the UNFCCC Secretariat in line with the Cancún Agreements. In addition, the EU supports efforts to enhance the on-line availability of information on fast start finance commitments, and other efforts to promote improved transparency and consistency of climate finance. 1. DELIVERING ON OUR COMMITMENTS 1. The EU Member States and the European Commission have confirmed 2.67 billion of fast start finance in 2012, together with the amount committed in 2010 ( 2.33 billion) and 2011 ( 2.35 billion), it has thus fulfilled its commitment to provide 7.2 billion cumulatively over the fast start period and has surpassed the target despite the difficult economic situation and strained public finances. i Ireland and the European Commission on behalf of the European Union and its member States provided detailed information on specific examples of the fast-start finance activities of these member States in its submission. This information was provided in the form of a separate annex. In order to reduce paper consumption, this comprehensive annex is provided on the official UNFCCC website only, see < 42

43 2. To be effective and to enable the fastest possible deployment of the available funds, the EU and its Member States have used existing bilateral and multilateral delivery channels where possible as well as reinforcing existing initiatives. This facilitates access as developing countries were able to build on existing working relationships with bilateral agencies and multilateral institutions. For example, EU fast start finance has been provided through existing multilateral channels such as the Climate Investment Funds, the Global Environment Facility, the Adaptation Fund, the Least Developed Countries Fund, the Forest Carbon Partnership Facility, and the Multilateral Development Banks. Table 1: Bilateral and multilateral channels in 2012* BILATERAL MULTILATERAL NOT ALLOCATED TOTAL Total amount (billion ) 1.74 % of total 65.6 Total amount (billion ) 0.91 % of total 34.4 Total amount (billion ) 0.0 % of total billion * On the basis of the data provided by the 25 Member States reporting the division between multi- and bilateral channels 3. The EU and its Member States continue to be the largest contributor of climate finance flows to developing countries and has been so since well before Copenhagen. These climate finance projects and activities are closely aligned with the objectives for fast start finance. The EU and its Member States remain firmly committed to these broader climate finance activities. 4. In addition to fast start finance, the EU and its Member States have made available considerable amounts of funds for the period in support of climate actions in developing countries, such as via the European Investment Bank (EIB) which provides diversified financing (with some elements of concessionality). This financing also helps leverage additional investments including from the private sector. 2. ACCESS TO EU FAST-START FUNDING 5. EU fast-start finance supported immediate action on climate change and preparations for efficient and effective adaptation and mitigation actions in developing countries in the medium and longer term, including measures for reductions in emissions from deforestation and forest degradation. 6. The EU and its Member States strove to allocate both bilateral and multilateral funding where it was most needed. In terms of new bilateral projects, in particular for adaptation, the EU and its Member States gave priority consideration to the most vulnerable and least developed countries. This included support for capacity building efforts as well as for the development and transfer of technologies. 7. The EU and its Member States continue to underline the importance of close dialogue and joint working with partner countries in assessing needs and setting priorities; EU fast-start finance was deployed with full respect for partner countries national ownership and primary responsibility for their own development. 8. Furthermore, the experience of existing institutions, including multilateral, regional and bilateral development financial institutions, and national governmental and non-governmental implementing agencies in delivering aid in developing countries was fully utilized. The agreed principles of aid effectiveness established by the Rome and Paris Declarations and the Accra Agenda for Action were fully respected and will continue to be so. 9. Fast start funding was a voluntary commitment and allocation decisions are made by the respective Member State / the Commission. In this context, their respective local or regional donor representations in developing countries play an important role as a first contact point. 43

44 III. IV. Synergies with progress towards reaching the MDGs 10. The EU and its Member States are committed to ensuring that fast start funding and other climate finance neither undermines nor jeopardises the fight against poverty and continued progress towards the Millennium Development Goals (MDGs). The European Council of 17 June 2010 reaffirmed its commitment to achieve development aid targets by 2015 as set out in its June 2005 Conclusions. The EU and its Member States remain the world s leading provider of official development assistance (ODA), responsible for almost 60% of all ODA in Climate issues have become increasingly integrated in broader development strategies (making ODA climate resilient ) so that actions to mitigate and adapt to the negative effects of climate change often support efforts to reach other MDGs and vice versa, e.g. by delivering actions to support climate resilient development and access to renewable energy. Transparent and consistent reporting 12. The EU s fast start finance package amounted to 2.67 billion in 2012 and included finance to support: adaptation; mitigation; reductions in emissions from deforestation and forest degradation in developing countries; technology cooperation and capacity-building, including for MRV and design of mitigation measures. 13. Adaptation : 743 million in 2012 to accelerate action to help poor and vulnerable countries and their people to adapt to and build resilience to the adverse effects of climate change, particularly in the least developed countries, small island developing states, and African countries that will be most seriously affected. Funding has helped developing countries protect their infrastructure, industry and agriculture from changing weather patterns and rising sea levels, support investment water management, drought-resistant cops, disaster risk reduction and in improved scientific analysis for decision making, and national planning. Adaptation efforts will take into account the priorities identified in National Adaptation Plans of Action (NAPAs), National Communications and other relevant planning documents. In the area of adaptation, particular attention was paid to enhancing partner countries' absorption capacities, increasing national ownership, and to verifying the viability and added value of initiatives in the longer term. 14. Mitigation : 1274 million in 2012 to accelerate the transition to a low-carbon global economy and to reduce greenhouse gas emissions by promoting the deployment of renewable energy technologies. Funding has promoted projects on: low carbon energy; energy efficiency; low carbon transport; the development of Nationally Appropriate Mitigation Actions (NAMAs) and low emission development strategies; capacity building to measure, report and verify emissions and on new carbon market mechanisms. 15. REDD+: 322 million in 2012 to reduce greenhouse gas emissions by reducing deforestation and forest degradation in developing countries and enhancing the sustainable management and conservation of forest and carbon stocks. Funding will demonstrate ways of changing the economics, build capacity to monitor effectively, report and verify emissions and removals from land-use activities; support necessary policy and governance reforms; work to enhance sustainable management and conservation of forests, and enhancement of forest stocks. Particular attention will be paid to improving forest governance (including land tenure reforms and forest law enforcement), and to ensuring benefits for local communities and indigenous peoples. V. Longer term perspective on post-2012 financing 16. The EU fast start climate finance was public funding provided to cover a short interim period in advance of a comprehensive and sustainable global system for support would be developed. Member States fast start contributions are voluntary and not based on any distribution key. They do not prejudge any burden sharing for future global climate financing. In Cancún the developed countries reiterated their commitment, in the context of meaningful mitigation actions and transparency on implementation, to a goal of mobilizing jointly USD 100 billion per year by 2020 to address the needs of developing countries. Funds provided to developing countries may come from a wide variety of sources, public and private, bilateral and multilateral, including alternative sources. 44

45 17. Despite the achievements of delivering on the strong EU fast-start finance pledge, more leveraging and continued global climate finance contributions will be necessary post 2012 to support initiatives that will deliver substantial results and value for money in helping to support adaptation to climate change and to achieve emissions reductions needed to keep global warming below 2oC. Reiterates in this respect the EU and other developed countries are working in a constructive manner towards the identification of strategies and approaches to scaling up climate finance from 2013 to In the years to come special attention should be placed on exploiting existing synergies and complementarities and efficient use of available funding. In order to ensure maximum impact of the different funds and instruments, domestic efforts by developing countries are encouraged, including the phasing out of fossil fuel subsidies and other distortions as well as in providing good framework conditions for investments, as recipient action is crucial in ensuring ownership of supported action and the right identification of national priorities. Comprehensive and nationally appropriate adaptation and mitigation plans and low emissions development strategies will further help to ensure ownership of supported action and identification of national priorities. The EU and its Member States call on other Parties to contribute and mobilise climate finance in view of the longer term goals. 18. The mobilisation of long-term climate finance for mitigation will depend on meaningful mitigation actions, transparency on implementation, and on a robust governance system inter alia ensuring measurement, reporting and verification being in place, taking into account the particular situation of LDCs. Further improvements in the knowledge base on climate impacts and capacity building efforts will facilitate long-term adaptation actions. 19. The EU will continue to work closely with the recipient countries and with the international community to learn from the implementation of these fast start finance commitments as we move toward operationalising the longer term financing provisions of the Cancún Agreements. We encourage and support dialogues at national level to facilitate the smart use of the funds made available. 20. In this regard, the Final Report of the UN Secretary General's Advisory Group on Climate Finance (AGF) and the report prepared by international organisations for G20 Finance Ministers provides an important starting point for further consideration, in particular the conclusion that it is challenging but feasible to meet the goal of mobilising $100bn per annum by 2020 for climate change in developing countries, subject to meaningful mitigation actions and transparency on implementation through a combination of innovative, public and private sources. The public finance contributions of participating parties to post-2012 financing are, in most instances, yet to be determined and should be agreed as part of the ongoing international climate negotiations while taking into account national budgetary rules. ODA will continue to play a catalytic role, particularly in the most vulnerable and least developed countries. 21. A comprehensive and globally uniform set of statistics for climate financing is clearly needed. This should build on experiences with existing reporting systems such as the OECD-DAC system for monitoring financial flows to developing countries and avoid developing competing reporting systems. Also in this context Member States should consider experience with fast start funding when addressing post-2012 climate financing and support. 45

46 ANNEX RESULTS OF MEMBER STATE REPORTING ON FAST START FINANCE COMMITMENTS, 26 March PLEDGES/ CONFIRMED CONTRIBUTIONS FOR EU CONTRIBUTION ( ) EU CONTRIBUTION EU CONTRIBUTION 2012 (billion ) (billion ) (billion ) NUMBER OF RESPONSES 27+ COM (28) 27+ COM (28) 27+ COM (28) TOTAL AMOUNT PLEDGED 7.20 TOTAL CONTRIBUTION % OF TOTAL AMOUNT PLEDGED PRINCIPAL AND SIGNIFICANT CLIMATE OBJECTIVES IN 2012 Number of Member States reporting on this question 19 Total reported amount of reporting MS (billion ) 2.00 Overall reported amount as % of EU FSF Contribution in Climate is principal objective Total amount (billion ) 1.49 % of total reported amount 75.0 Climate is significant objective Total amount (billion ) 0.50 % of total reported amount TYPES OF INVESTMENTS IN 2012 Number of Member States reporting on this question 24 Total reported amount of reporting MS (billion ) 2.22 Total reported amount in % of EU FSF Contribution in Grants Total amount (billion ) 1.73 % of total reported amount 78.2 Loans, equities or others 1 Total amount (billion ) 0.48 % of total reported amount Most loans reported were confirmed as being concessional in nature. 46

47 4. BILATERAL & MULTILATERAL CHANNELS IN 2012 Number of Member States reporting on this question 25 Total reported amount of reporting MS (billion ) 2.65 Total reported amount in % of EU FSF Contribution in BILATERAL MULTILATERAL NOT ALLOCATED Total amount (billion ) 1.74 % of total reported amount 65.6 Total amount (billion ) 0.91 % of total reported amount 34.4 Total amount (billion ) 0.0 % of total reported amount OBJECTIVES AND SECTORS IN 2012 Number of Member States reporting on this question 25 Total reported amount of reporting MS (billion ) 2.64 Total reported amount in % of EU FSF Contribution in ADAPTATION REDD+ MITIGATION (excluding REDD+) NOT ALLOCATED, OTHER Total amount (billion ) 0.74 % of total reported amount 28.1 Total amount (billion ) 0.32 % of total reported amount 12.2 Total amount (billion ) 1.26 % of total reported amount 48.1 Total amount (billion ) 0.31 % of total reported amount OVERVIEW OF MULTILATERAL CHANNELS USED FOR FSF IN 2012 Number of Member States using multilateral channels 19 Number of Member States providing details on multilateral channels 15 Total reported amount for multilateral channels(billion ) 0.85 Total reported amount in % of EU FSF Multilateral contribution in MULTILATERAL AND REGIONAL INSTITUTIONS (million ) CIFs': Clean Technology Fund CIFs': Pilote Programme for Climate Resilience 54.0 CIFs: Small Scale Renewable Energy Programme 50.8 CIF's: Strategic Climate Fund

48 6. OVERVIEW OF MULTILATERAL CHANNELS USED FOR FSF IN 2012 IFC Renewable Energy (incl NIPP) 5.8 World Bank: Forest Carbon Partnership Facility 19.3 World Bank: Partnership for Market Readiness 19.7 World Bank: others 3.4 Global Water Partnership 3.3 Green Climate Fund 1.1 Investment Fund for Developing Countries 6.7 International Union for the Conservation of Nature 4.2 Others 54.7 Subtotal UNFCCC and KYOTO PROTOCOL FUNDS (million ) GEF ADAPTATION FUND 12.8 LEAST DEVELOPED COUNTRIES FUND 41.5 SPECIAL CLIMATE CHANGE FUND 17.0 Subtotal UN Initiatives / funds (million ) FAO 5.0 IFAD 2.4 IFAD Agriculture Smallholders Adaptation Programme UNEP 11.6 UNDP 7.5 other UN 1.2 Subtotal TOTAL

49 E. Japan 1. Overview Japan s Fast-Start Finance for Developing Countries up to 2012 (As of December, 2012) ii May, 2013 In December 2009, Japan announced the assistance of approximately USD 15 billion including public and private financing, of which public finance comprises approximately USD 11 billion, for developing countries up to 2012 to address climate change (hereinafter referred to as the Fast-Start Finance). This Fast-Start Finance aims to assist developing countries, especially those making efforts to reduce GHG emissions as well as those which are vulnerable to the negative impacts of climate change, taking into account the developments in the international negotiations and the state of Japan s reconstruction after the Great East Japan Earthquake, an unprecedented disaster in Japan has made utmost effort to play its part of the commitment made by developed countries to provide 30 billion to developing countries in three years from 2010 to 2012 as agreed by the Cancun Agreements. Faced with the Great East Japan Earthquake, Japan was determined to overcome the catastrophe and to continue to faithfully implement the commitment on the Fast-Start Finance to fulfil a positive role in the international community. Japan s assistance to developing countries is composed of two main types of assistance. One is Official Development Assistance (ODA) such as grant aid, technical assistance, concessional loan and contribution to multilateral funds, which are implemented by relevant ministries and agencies, Japan International Cooperation Agency (JICA) and other institutions. The other includes Other Official Flow (OOF) such as co-financing of the Japan Bank of International Cooperation (JBIC), and private financing catalyzed by the basis of public financing. Out of approximately USD 15 billion of the Fast-Start Finance announced in December 2009, USD 17.6 billion including public and private financing has been implemented as of December However, if the Fast-Start Finance is limited to projects or programs based on public financing newly implemented during the period between January 2010 and December 2012, the amount of the implemented assistance would be USD 13.5 billion. Taking into account the discussions at the UNFCCC negotiations, the Fast-Start Finance implemented by Japan from January 2010 onward and composed of public financing is explained more in detail as below. 2. Objective of Japan s Active Efforts including Fast-Start Finance Japan has been carefully implementing a wide variety of assistance in favor of developing countries, in order to move forward in the international negotiations steadily toward the establishment of a fair and effective international framework applicable to all Parties. Considering the priority to be given to developing countries which are vulnerable to adverse impact of climate change as agreed in Cancun Agreements, over 50% of Japan s grant-based assistance against climate change for those countries is devoted in the area of adaptation to respond to the needs of vulnerable countries including Africa, LDC and SIDS. Japan is also willing to carry out the assistance utilizing its advantages such as advanced technologies aiming at achieve global compatibility between economy and environment. This will help promote efforts toward the achievement of low-carbon growth. As one of the concrete examples, regarding the East Asia area, Japan and Indonesia co-chaired East Asia Low Carbon Growth Partnership Dialogue in Tokyo on 15th April in 2012 under the framework of East Asia Summit, and participants reaffirmed the importance of realization of low-carbon growth in the area. Following the First Dialogue, Japan and Cambodia co-chaired the Second East Asia Low Carbon Growth Partnership Dialogue in Tokyo on 18th May in 2013, and participants reiterated the importance of promoting effective low carbon technologies. Through these efforts, Japan is willing to contribute to fighting against climate change by encouraging the achievement of low-carbon growth all over the world. ii Japan provided detailed information on its fast-start finance activities in the submission. This information was provided in the form of a separate annex. In order to reduce paper consumption, this comprehensive annex is provided on the official UNFCCC website only, see < 49

50 3. Contents of Japan s Fast-Start Finance implemented as of December 2012 The main components of our assistance which amount to USD 13.5 billion as of December 2012 are as follows. It should be noted that Japan s assistance for developing countries accords importance to establishing a mechanism that not only ensures the effective use of public financing, but also facilitates the mobilization of private financing. Large-scale projects on infrastructure, such as the introduction of facilities with high energy efficiency and the construction of electric power transmission facilities, will require massive investment, and thus leveraging the private financing would be crucially important (this is why Japanese private financing of over USD 3 billion had been mobilized for assistance to developing countries, as of December 2012, though this figure is not counted as the Fast- Start Finance in this report). (1) Mitigation: USD 9.99 billion Assisting developing countries in such areas as promotion of renewable energy including solar energy, wind energy and geothermal, and introduction of facilities with high energy efficiency, to contribute to reducing GHG emissions. Projects for introduction of clean energy by solar electricity generation system (24 countries, 130 million) Wind power plant projects (Egypt, 338 million) Geothermal power plant projects and feasibility studies (13 countries and regions including Kenya, Indonesia and Peru, 979 million) Electric transmission projects (Olkaria to Kisumu in Kenya: 108 million, Iringa to Shinyanga in Tanzania: 53 million, Habarana to Veyangoda in Sri Lanka: 83 million) (2) Adaptation : USD 1.37 billion Strengthening developing countries capability to cope with natural disasters caused by climate change, and providing necessary equipment and facilities to take precaution measures against and to recover from natural disasters including floods and droughts. Program for the improvement of capabilities to cope with natural disasters caused by climate change (25 countries, 164 million) Infrastructure rehabilitation projects for typhoon damage (Philippines, 86 million) Project for flood protection and drainage improvement (Cambodia, 30 million) Technical assistance on climate change prediction (South Africa: 1.9 million) Capacity building for disaster management in coastal area (Samoa: 6.48 million) Rural water supply projects (Ethiopia, Kenya, Djibouti, Sudan, Togo and Malawi: 34 million ) Desalination project (Tunisia: 8.7 million) (3) Mitigation and Adaptation: USD 2.10 billion Assisting developing countries to tackle climate change issues (both Mitigation and Adaptation) by providing contribution to multilateral fund and program loan to address climate change. Contribution to Global Environment Facility (GEF) (96 million) Contribution to Climate Investment Funds (CIF) (967 million) Climate Change Program Loan (Indonesia and Viet Nam, 410 million) Policy dialogue with African countries (in Tokyo, October 2011) and SIDS countries (in Tokyo, July 2012) Cf.) REDD+: 723 million Assisting developing countries to conduct survey on forest resources, formulate forest management plan and facilitate forestation by providing necessary equipments in order to promote sustainable usage and conservation of forests. 50

51 Forest conservation programs (21 countries, 158 million) Contribution to UN-REDD (3.2 million) 4. Features of Japan s Fast-Start Finance (1) Various types of assistance in a wide range of areas As Japan s Fast-Start Finance, 952 projects have been implemented in as many as 114 countries as of December Through the Japanese Embassies and JICA s local office stationed in a number of developing countries, the Japanese Government has been developing projects of the Fast-Start Finance in close consultation with the government of developing countries and international organizations in response to the needs of recipient countries. Japan has been providing assistance through various channels, including grant aid, concessional loan and technical assistance, taking into account local economic situations and content of projects. (2) Grant- based assistance prioritizing the area of adaptation In Japan s Fast-Start Finance, the grant-based assistance including grant aid, technical assistance and contribution to multilateral funds has been implemented as follows: Mitigation: 600 million (23.0%) Adaptation: 876 million (33.6%) Mitigation/Adaptation: 1,130 million (43.4%) Cf.) REDD+: 214 million (8.2%) These figures show that Japan has implemented grant projects, reflecting the needs for adaptation of developing countries, in particularly those of vulnerable countries in relation to adaptation. (3) Assistance focusing on vulnerable countries Japan has implemented its assistance to developing countries vulnerable to climate changes as follows (US dollars): Total Mitigation Adaptation Mitigation /Adaptation Cf. REDD+ vulnerable countries (total) 2,101 million 1,432 million 644 million 25 million 142 million Africa 1,585 million 1,186 million 385 million 13 million 99 million LDCs* 927 million 412 million 500 million 15 million 89 million SIDS** 118 million 87 million 26 million 5 million 11 million *LDCs: Least Developed Countries **SIDS: Small Island Developing States With regard to the grant-based assistance including grant aid, technical assistance and contribution to multilateral funds for vulnerable countries, it has been implemented as follow: In vulnerable countries (total) Mitigation: 344 million (39.3%) Adaptation: 506 million (57.8%) Mitigation/Adaptation: 25 million (2.9%) In Africa Cf.) REDD+: 142 million (16.2%) Mitigation: 254 million (39.0%) 51

52 Adaptation: 384 million (59.0%) Mitigation/Adaptation: 13 million (2.0%) In LDCs Cf.) REDD+: 99 million (15.2%) Mitigation: 202 million (34.8%) Adaptation: 362 million (62.4%) Mitigation/Adaptation: 15 million (2.6%) In SIDS Cf.) REDD+: 89 million (15.3%) Mitigation: 32 million (50.8%) Adaptation: 26 million (41.3%) Mitigation/Adaptation: 5 million (7.9%) Cf.) REDD+: 11 million (17.5%) 57.8% of the total amount of the grant-based assistance implemented in vulnerable countries including Africa, LDCs and SIDS was allocated into the area of adaptation. 5. Use of private finance In order to further promote climate change action, Japan has also been working on establishing a mechanism to leverage private investment by use of public finance. Co-financing by JBIC with private sector and trade insurance are the examples of utilizing private finance. Private Finance also plays an important role to tackle climate change as its total amount is over 3 billion dollars as of December 2012, although it is not counted as Japan s Fast-Start Finance in this document. 6. Channel and access for Japan s Fast-Start Finance There are mainly 5 types for Japan s Fast-Start Finance; i.e. (1) grant aid (2) loan (3) technical assistance (4) contribution to international organizations (5) OOF and others. Ministry of Foreign Affairs, Ministry of Agriculture, Forestry and Fisheries, Ministry of Economy, Trade and Industry, Ministry of the Environment, Ministry of Land, Infrastructure, Transport and Tourism and JICA are implementing agencies of the types (1)-(3). The type of (4) is contributions to the development organizations or multilateral funds such as GEF, CIF, UNDP, UNEP, WFP and ITTO, which are implementing agencies of this type of assistance. Regarding the type (5), relevant Japanese ministries and JBIC are the main implementing agencies. See the attached list for the detail. 7. Tangible examples of Japan s Fast-Start Finance Japan s Fast-Start Finance has been effectively implemented based on needs and phase of development of the recipient countries. The following are the typical examples. (The detailed list is attached herewith. This list shows concisely the type of support such as grant/loan, countries and area, category, name of project, date, amount of money and channel.) (1) Grant Aid in bilateral cooperation Prevention of Disaster and Rehabilitation (Adaptation) In 25 countries, Japan provided financial support for the rehabilitation and maintenance of disaster prevention equipment, recovery measures against natural disasters and water supply by groundwater development, as measures taken for adaptation to climate change, including large scale typhoon or cyclone. In Samoa, as a part of measures against climate change and disaster prevention in Oceania, Japan provided financial support to introduce meteorological observing equipment and communication systems in meteorological bureau and international airport. Besides, in Solomon Islands, Japan provided financial support to improve shortwave radio network 52

53 to broadcast emergency news related to natural disaster all over the country. In Honduras, Japan constructed land slide prevention facilities such as catchment wells, ditches, earth removal and earth fill and also introduced earth slide monitoring, warning and escaping systems in high risk areas. In Morocco, where a large number of victims are caused by natural disaster once in several years, Japan has been making efforts to introduce observation and warning devices in river basins and technical supports for activities related to evacuation, in order to reduce damages caused by flood. In Bhutan, Japan provided financial support for reconstruction of the bridges which were damaged by cyclone and vulnerable bridges to be easily damaged by heavy rain in the future. Water and Sanitation (Adaptation) Japan repaired the water supply facilities in the areas which have been suffering from drought caused by climate change. For example, in Ethiopia, Japan constructed and repaired the water supply facilities and provided equipments for reconstructing wells in 10 districts where water supply was extremely poor and underwater development was technically and geologically difficult. In addition, in Sudan Japan improved water supply facilities and implemented plans to supply safe water stably with the residents. Moreover, in Togo, Japan supported the construction of 10 water supply facilities with engine pomp as well as constructed 100 water supply facilities with human-powered pomp and repaired 50 facilities. Introduction of solar power plant (Mitigation) In 24 countries, Japan contributed to stabilizing electricity supply in developing countries while contributing to reducing GHG emissions, by introducing solar power equipments in the public spaces such as school, airport, water plant and reservoir and thus replacing a part of consuming electricity with renewable energy. In some projects, Japan also provided necessary technical training to manage, maintain and control equipment. Forest Conservation (Mitigation/REDD+) In order to contribute to encouraging REDD+ efforts and reducing GHG emissions in 21 countries, Japan provided technical support to analyze satellite images and financial support for monitoring systems and related equipment in the following actions; making forest distribution map, preventing excessive logging, taking countermeasures against forest fire and ensuring alternative energy to firewood. (2) Loan support in bilateral cooperation Improvement of energy access through the maintenance of electricity transmission equipment (Mitigation) Japan has been contributing to reducing GHG emissions by electrification of local areas and the improvement of transmission efficiency, while aiming for a transfer to clean energy. In Kenya, Japan built 140 MW geothermal power plants in Olkaria, and supported Olkaria to Kisumu power transmission construction project to enable renewable energy transmission from Olkaria to Kisumu. In Tanzania, Japan has been improving transmission efficiency by expanding a part of the power transmission from Iringa to Shinyanga, in order to stabilize its electricity supply. In Cameroon, Japan has aimed at enhancement of electric power transmission capacity and dissemination of electricity supply to nonelectrificated areas by constructing electric power substations and electrical line as an electric distribution facilities. Introduction of wind power plant (Mitigation) Japan has been constructing 220 MW wind power plant in Gulf of El Zayt, Red Sea coast, Egypt. Introduction of highly efficient power-saving facilities (Mitigation) In Uzbekistan, Japan introduced highly energy-efficient combined cycle gas turbine to aim at stable electric supply, achieving both emission reduction and economic growth. Climate Change Program Loan (Mitigation/Adaptation) Japan s loan aid is implemented by JICA and one of its characteristic programs is Climate Change Program Loan (CCPL). It helps to develop the multi-year national climate change policy of developing countries, which is called the policy matrix, based on policy dialogues and supports the activities of private sector to implement those policies. In the process, Japan flexibly coordinates various ODA instruments such as loan aid or technical cooperation. Japan 53

54 revises the policy matrix by doing monitoring and evaluation every year, and then considers the second and subsequent phase of program loan. Japan has already signed CCPL agreements with Indonesia and Vietnam, and is now considering introducing it in other countries. (3) Technical Assistance in bilateral cooperation Prevention of Disaster and Rehabilitation (Adaptation) In the Republic of South Africa, Japan provided technical support to enhance the functions of meteorological forecasting system, in order to improve the capability of coping with environmental issues such as climate change. In Mozambique, Japan is making efforts to enhance the adaptation capability to climate change, strengthening the basic capability for taking countermeasures against coastal erosion. In Fiji, Japan strengthened the disaster prevention capacity in the local communities to enhance system which enables the residents to escape appropriately in case of flood. Water and Sanitation (Adaptation) In Nigeria, Japan is making efforts to improve local water supply through the capacity building of local staff in charge of water supply and sanitation, in order to better cope with the changes of precipitation pattern caused by climate change. In Burkina Faso, Japan provided technical support to develop, demonstrate water supply and sanitation system which was suitable to that area, as well as to help prepare its introduction. NAMA(Mitigation) Japan supported the capacity building to formulate and implement NAMA in Serbia, Asian countries including Vietnam and African countries. Improvement of Energy Efficiency (Mitigation) In Papua New Guinea, Japan conducted a survey on the current electricity demand and supply and its forecast, as well as a survey on the fuel replacement (from light diesel oil to natural gas) for thermal power plant, the introduction of the cogeneration system, the improvement of energy efficiency (such as heat quantity, transmission) and enlargement of electric-generating capacity, and thus assisted efforts of PNG to reduce GHG emissions. Promotion of REDD+ efforts (Mitigation/REDD+) In Brazil, Japan developed a wide-area assessment technology to evaluate carbon dynamics of various forests in Amazon to conserve functions of forests. Policy Dialogue (Mitigation/Adaptation) Japan held policy dialogue with African countries in Tokyo in October, 2011, inviting negotiators and practitioners from 15 African countries. Japanese and African officials exchanged views on climate change negotiation and concrete cooperation and shared efforts and experience toward the achievement of low-carbon growth. Following the dialogue with African countries, Japan held policy dialogue with SIDS countries in Tokyo in July, 2012, inviting negotiators and practitioners from 21 countries from SIDS countries. Japan is also planning to hold policy dialogue on climate change with Asian developing countries in Tokyo in summer this year. (4) Cooperation with international organization Support for organizing Adaptation Fund Workshop in Africa, Asia and East Europe (Adaptation) While the Cancun Agreements adopted at COP16 requested Parties to conduct workshops in each region to inform Parties of the process and requirements of the accreditation of National Implementation Agencies which have a direct access to resources of Adaptation Fund, Japan has provided financial support to hold this workshop in Africa, Asia and East Europe. 54

55 Cooperation with UNDP (Adaptation) In islands states in Oceania and Caribbean Sea, Japan has been providing, in collaboration with UNDP, technical support for managing natural disaster risk and sharing know-how in adaptation to climate change. Cooperation with ITTO (Mitigation/Adaptation) Japan has supported the implementation of ITTO projects to promote conservation and sustainable management of tropical forests, and appropriate use of tropical forest resources Replenishment to GEF (Mitigation/Adaptation) Japan made a contribution of US $96 million to the 5 th replenishment of the Global Environment Facility (GEF), which is a multilateral financial mechanism to support developing countries efforts to preserve and improve global environment. Contribution to CIF (Mitigation/Adaptation) Japan also made a contribution of US$ 967 million to Clean Technology Fund, which supports projects for reducing GHG emissions, and to Strategic Climate Fund, which supports measures such as adaptation against the adverse effects of climate change in developing countries. (5) Other Official Flow, including co-funding with private sector Global action for Reconciling Economic growth and Environmental preservation by JBIC (GREEN) (Mitigation) In April 2010, JBIC launched a new operation named GREEN (Global action for Reconciling Economic growth and Environmental preservation) of which primary purpose is to support projects with favorable impact on the preservation of the global environment. Under the GREEN operation, JBIC utilizes its untied facility (loans and guarantees) and equity participation while mobilizing private funds. <Features> In every project under the GREEN operation, JBIC conducts its own accounting measures named J-MRV Guidelines for reduction impact of GHG emission. It is based on the idea that such accounting makes borrowers strongly aware of their contribution to the preservation of the global environment through the relevant projects. <Examples> JBIC has provided finance needed for the environment-related loans (improving energy efficiency project or renewable energy project) to financial institutions, such as Deniz Bank in Turkey, Corporacion Andina de Fomento in Latin America, BNDES in Brazil and ICICI Bank in India. Through this operation, the funding of JBIC enabled private finance institutions to co-finance, which led to the mobilization of more fund. 8. The reference of Japan s Fast-Start Finance If you have any questions about Japan s Fast-Start Finance, please contact Japanese Embassies and JICA s local offices in your area. For your inquiries on outcome or data of Japan s Fast-Start Finance, please direct to Japanese Embassies. 55

56 FCCC/CP/2013/INF.1 F. Liechtenstein Fast-Start Finance Progress Report for the Period May 2010 to May 2013 In a spirit both of global partnership and solidarity, Liechtenstein is committed to assisting developing countries adapt to and mitigate the effects of climate change. Efforts are being made, where relevant, to integrate climate change assistance into broader development cooperation aiming at a sustainable and comprehensive development of disadvantaged and marginalised regions of the world. The Liechtenstein Government has repeatedly underscored its commitment to achieving the international ODA target of 0.7% as soon as possible. Under the budget line International Humanitarian Cooperation and Development, Liechtenstein s most recent ODA percentage for the year 2011 is Fast-start financing commitment In addition to its ODA, as part of the global effort, Liechtenstein has committed fast-start financing of up to a total amount of USD 58 per capita in grant funding over the period from May 2010 to May 2013; from this total amount USD 18.6 per capita has been raised with the help of Public Private Partnerships (PPP): At the time (December 2009) when relevant parties were invited to engage in fast-start financing, the state budget had already been decided and allocated to the different budget lines. The only way to start projects in 2010 under the umbrella of a new and additional budget line was a PPP-project, a project based on an unconditional grant, new and additional to budget sources earlier decided. With calculations taking into account the national level of emissions, the financial capacity and the population size, the Liechtenstein Parliament (Landtag) decided in December 2010 to introduce a new fast start financing budget line of CHF for the years 2011 and 2012, a budget line based on additional, new increases in the cooperation and development aid budget. Liechtenstein s fast start financing commitment is therefore not diverting from other important development priorities, but instead will complement and further strengthen these. In 2012, the Parliament decided to extend its engagement in Climate Finance until 2015 with a total budget of CHF In implementing its fast-start financing, Liechtenstein s prime concern is the delivery of effective results and benefits which address the sustainable development and climate change needs and priorities of developing countries. In general, with its fast-start financing, Liechtenstein aims at giving support in planning and realising sustainable development by further defining a responsible development framework, evaluating capacities, making wise use of and therefore securing resources. Fast-start funding not only aims to assist in governance and capacity-building, but also to foster effects like safe living conditions and guaranteeing subsistence, which is respecting dignity and creating additional sources of income and constant progress in the field of education and jobs. Project actions and components show a need driven approach, because they are developed by recipients and reflect their priorities; allow recipients to gain ownership of the processes and projects; activate the self organisation of local populations; support socially, economically and environmentally friendly initiatives; contribute to solving gender problems, empowering women, raising awareness among young people and civil society and finally strengthening peace and security. In general, support is given to development country partners to help them both adapt to and mitigate the effects of climate change. For the sake of performance and efficiency, Liechtenstein prefers a bilateral allocation of fast-start projects. Therefore the realisation of projects is focused on traditional cooperation partners under the umbrella of the Mountain Partnership or partners of the Liechtenstein Development Service (LED). 56

57 FCCC/CP/2013/INF.1 Liechtenstein s adaptation assistance focuses on improving resilience to extreme weather conditions and other hazards, by investing in infrastructure which can better withstand climate change impacts, and through other practical measures to help local communities be more prepared. To assist in mitigating climate change, Liechtenstein is placing emphasis on supporting energy efficiency programmes and renewable energy systems in the Caucasus, Central Asia and African countries. Liechtenstein strives to allocate these official funds in a balanced manner by supporting climate projects, which are reflecting recipient needs as regards sustainable development and which are politically supported by respective authorities. With regard to the implementation of efficient and effective development policies, both partnerships and networks are indispensable: partnerships, which for their mutual benefit are embracing governments, institutions and civil society. Such Public Private Partnerships (PPP) with their potential for mobilising private funds and knowledge in order to carry out governmental obligations and at the same time making best use of each partners strengths must much more determine successful environment and development policies in future as they do today. Therefore, from the very start of its fast-start financing, Liechtenstein has always strived for supplementing its national fast-start contributions by private or institutional sources. Summary of Liechtenstein s fast start financing for the period May 2010 May 2013 Government Decision Nr. Thematic area Type of project Realisation Realisation: 2010/2011 Adaptation; mitigation Rehabilitation and upgrading of multitype outpatient children s clinic Grant Prevention of floods: bank protection, road and bridge reconstruction Grant Mitigation; capacity building Establishment of an energy efficient school Grant Adaptation; mitigation House insulation and construction of efficient stoves Grant Completed 2010/1562/9087 Adaptation Realisation: 2011 Completed 2010/2453/9087 Realisation: 2011/ Completed 2010/2453/9087 Realisation: 2011/12/13 Completed Partner(s) Amount of contribution (USD) State 2010/86/9087 PPP project; Type Recipient Country / Region Telavi Municipality; Georgia Medicor Foundation, Liechtenstein; Kakheti Regional Development Agency Telavi Municipality; village of Sharauli; Kakheti Regional Development Agency Georgia Ganja Municipality, EcoRenaissance Ganj a Azerbaijan Zerger Watershed Region;.Public Foundation CAMP Alatoo. Kirgizstan 57

58 FCCC/CP/2013/INF.1 Government Decision Nr. Thematic area Type of project Realisation Realisation: 2011 Capacity building; good governance Conference: Climate change adaptation, challenge and opportunity for the Caucasus Grant Adaptation Afforestation; bank protection; prevention measures against avalanches; improvement of hayfields and pastures Grant Adaptation; mitigation Irrigation of agricultural land; pedal pumps for CO2 emission reduction Grant Adaptation Afforestation project within the program: Rural development for sustainable food security Grant Prevention measures against avalanches; rehabilitation of irrigation channel; Grant Mitigation; capacity building Establishment of an energy efficient school Adaptation; mitigation Rehabilitation and optimisation Completed 2011/464/9087 Realisation: 2011/12 Completed 2011/464/9087 Realisation: 2011/12/13 Running 2011/1052/9087 Realisation: 2011/12 Completed 2011/2627/9087 Adaptation Realisation: 2012 Completed 2012/337/9087 Realisation: 2012/13 Realisation: 2012/13 Completed 58 Recipient Country / Region REC Caucasus Caucasus Kazbegi Municipality; Community & Environment Georgia Liechtenstein Development Service; Wasser für die Dritte Welt Tanzania Liechtenstein Development Service; HORIZONT Senegal Kosh Gorod Municipality Tajikistan Grant Sevan Municipality; Environmental Survival Armenia Grant Telavi Municipality; Medi cor Georgia Completed 2012/337/9087 PPP Project; Partner(s) Amount of contribution (USD) State 2011/464/9087 Type Foundation, Liechtenstein

59 G. New Zealand NEW ZEALAND S FAST-START FINANCE Final report, September 2013 New Zealand has delivered on its fast-start commitment. This commitment has assisted developing countries adapt to and mitigate the effects of climate change. As part of the global effort, New Zealand provided its fair share of fast-start financing of up to NZ$30 million per annum over the three-year period Highlights New Zealand s fast-start finance was used to increase water security, energy security and disaster resilience for communities and infrastructure, with a focus on the Pacific region. Total fast-start spend to 30 June 2013 was NZ$90.34 million (Table 1), delivered primarily as grant-based bilateral assistance through the New Zealand Aid Programme. The majority (53 percent) of New Zealand s support was delivered to small-island developing states and leastdeveloped countries in the Pacific. Most of New Zealand s bilateral and regional fast-start finance focused on delivering climate change outcomes in the Asia-Pacific region (Table 2). New Zealand s fast-start finance reflects a growing emphasis on supporting clean, efficient and affordable energy (Figure 1). Nearly 40 percent of New Zealand s fast-start finance was delivered to support adaptation activities (Figure 2). Table 1: Annual expenditure of fast-start finance by sector (NZ$ million), July-June financial year reporting Sector TOTAL Energy % Transport % Multi-sector % Disaster risk management % Capacity % Buildings % Water and sanitation % Natural resource management % TOTAL

60 Table 2: Annual expenditure of fast-start finance by region (NZ$ million) Region TOTAL Pacific % Asia % International/Multilateral % South America % TOTAL Figure 1: Annual expenditure of fast-start finance by sector (NZ$ million) Figure 2: Allocation of fast-start finance for projects relating to mitigation, adaptation, and multiple activities that address both mitigation and adaptation 60

61 What we do New Zealand s prime concern has been the delivery of effective results and benefits that address the sustainable development and climate change priorities of developing countries. The majority of New Zealand s fast-start finance has been delivered as bilateral assistance through the New Zealand Aid Programme, in programmes and projects designed to complement and further strengthen the aid programme s core focus on sustainable economic development. New Zealand has delivered fast-start support where climate change objectives are a co-benefit to sustainable development objectives. This approach is in line with international best practice. Some of New Zealand s fast-start finance has been delivered through multilateral climate change funds and programmes, and on agriculture and climate change research and development. For example, New Zealand established the Global Research Alliance on Agricultural Greenhouse Gases in December The Alliance focuses on research, development and extension of technologies and practices that will help deliver ways to grow more food, and as part of more climate-resilient agricultural systems, without increasing greenhouse gas emissions. The New Zealand Government has committed NZ$45 million (out to June 2016) to support the Alliance, some of which has been delivered as part of New Zealand s fast-start commitment. New Zealand also provides considerable support to Pacific regional agencies that implement significant climate change programmes on the ground in Pacific island countries. This support includes such initiatives as the Island Climate Update (ICU) a monthly weather forecasting bulletin for all countries in the Pacific. A focus on the Pacific Consistent with the New Zealand aid policy s core focus on the Pacific, fast-start finance has a strong emphasis on the small island developing states in the Pacific. This is a region where the needs for climate change assistance are great and where New Zealand has the relationships and experience to make a difference. Support has focused on assisting our developing country partners become more resilient to the adverse impacts of climate change, climate variability, and natural disasters, and to support clean, efficient and affordable energy and low carbon development. Small island developing states in the Pacific are especially vulnerable to the physical effects of climate change and extreme weather. Impacts in critical areas such as health, water resources and food supply will exacerbate existing development challenges, particularly for atoll nations such as Kiribati, Tuvalu and Tokelau. Our climate change adaptation assistance therefore includes a focus on improving resilience to extreme weather and other hazards by investing in infrastructure that can better withstand climate change impacts, and through other practical measures to strengthen disaster preparedness. What we support The fast-start commitment was a one-off, voluntary contribution that developed countries agreed to as part of a broader commitment to provide climate finance. New Zealand decided its fair share would be delivered through grant support to: bilateral projects where climate change outcomes represent a co-benefit from meeting development objectives, and specific contributions to multilateral climate change funds and programmes such as the Global Environment Facility (GEF). Finance for adaptation Adaptation aims to reduce the vulnerability of human or natural systems to the impacts of climate change and climate variability by increasing resilience and adaptive capacity. Adaptation and disaster risk reduction are closely related processes, with both aiming to reduce risk to short-term acute environmental hazards, such as earthquakes and cyclones, and to longer-term chronic environmental hazards due to sea level rise and changing rainfall. Water supply management in Tuvalu and Tokelau New Zealand responded to requests for assistance from Tuvalu and Tokelau to manage drought conditions in both countries during October Following low rainfall due to record La Nina conditions, New Zealand deployed 61

62 desalination units and personnel to Funafuti, Tuvalu to help remedy water shortages and build a supply buffer against future shortages. In Tokelau, a joint operation with other donors saw the provision of New Zealand Government supplies including 500 collapsible water containers, 12 one-ton water cubes, and a water engineer and other personnel to assist with managing drought conditions. Flood resilience in Fiji Following devastating floods in Fiji in January 2012, New Zealand provided a FJ$500,000 relief package to support 14,000 people. A further FJ$2.2 million was provided for Fiji s National Disaster Management Office to better prepare communities for managing and responding to natural disasters. Assistance for home repairs, provision of supplies and disaster preparedness and health education was also provided. Building resilience in South Viet Nam New Zealand is helping communities and local authorities in the Mekong Delta adapt to climate change and improve their disaster resilience, benefitting over 100,000 local people. Another 300,000 people are likely to indirectly benefit from the project s emergency preparedness and livelihood adaptation activities. This project is a joint initiative with Oxfam GB in the southern province of Ben Tre, Viet Nam, and due to be completed in April Finance for mitigation Mitigation aims to reduce greenhouse gas concentrations in the atmosphere through measures such as switching from oil-fired generators to renewable sources, increasing energy efficiency, and enhancing carbon sequestration by expanding forest stocks. Mitigation measures can bring additional and important co-benefits, such as increasing energy security, reducing reliance on costly oil imports, and encouraging growth in emerging 'green' industries. The majority of New Zealand s finance for mitigation has focused on the energy and agriculture sectors. New Zealand s support for climate change mitigation is primarily designed to increase access to clean, efficient and affordable energy through measures such as switching from oil-fired generators to solar panels. Energy: Maama Mai Solar facility, Tongatapu, Tonga Development of this solar facility in Tonga was the result of a unique partnership between the New Zealand and Tongan governments, and state-owned enterprises Tonga Power Limited and Meridian Energy. The Maama Mai (which translates into English as let there be light ) is helping reduce Tonga s reliance on expensive imported fossil fuels and reduce the cost of power for all energy consumers in Tonga. The system generates 1,880 MWh per year. It is reducing annual diesel consumption and decreasing annual carbon dioxide emissions by over 2,000 tonnes. Tonga Power is responsible for operating and maintaining the facility and Meridian Energy is providing asset management and maintenance advice to Tonga Power over the next five years. Renewable energy in Bamyan, Afghanistan In 2012 New Zealand agreed to build a solar/diesel hybrid energy system for the people of Bamyan. When completed the 1MW photovoltaic-based system will be the largest of its kind in Afghanistan and will be a reliable and sustainable source of electricity for approximately 2,500 homes, businesses and government offices in Bamyan Centre. The substantial construction of this energy system is expected to be completed by the end of Agriculture: New Zealand initiated the Global Research Alliance on Agricultural Greenhouse Gases (the Alliance ) in late This major initiative involving the collaboration of 38 developed and developing member countries is finding ways to reduce agricultural greenhouse gas emissions intensity without compromising food security. The Alliance focuses on agricultural greenhouse gas mitigation research, knowledge sharing, collaborative projects, and the extension of technologies and practices. 62

63 New Zealand has committed NZ$45 million in funding to activities that support the Alliance until June The majority of this funding is allocated to international collaborative research funds, targeted research projects, capability building workshops and fellowships and the establishment of global science networks. What we fund: how we define and identify climate finance New Zealand is committed to regular and transparent reporting of its climate change finance, and to find ways to further improve the tracking of its climate change related financial flows. For fast-start finance delivered through official development assistance, the New Zealand Aid Programme s Climate Change Operational Policy details how climate change support is delivered and describes how that support is recorded and quantified. The New Zealand Aid Programme s Climate Change Operational Policy requires that activities must be assessed for climate change risks, and opportunities to support climate change adaptation and mitigation explored. Where climate change risks or opportunities have been identified, activity designs include one or more outcomes that address these issues. Expenditure on climate change activities is recorded in the New Zealand Aid Programme s reporting systems according to the following criteria (Table 3). New Zealand has implemented the OECD Development Assistance Committee (DAC) Rio markers for tracking climate change adaptation and mitigation related development assistance. While the Rio markers capture the policy objectives of the funded activity, they do not attempt to quantify expenditure towards these objectives. New Zealand has therefore initiated a system to standardise the quantification of climate change related expenditure based on the DAC Rio markers. This information is recorded in the New Zealand Aid Programme s Climate Change Inventory. Table 3: Financial information recorded in the New Zealand Aid Programme s Climate Change Inventory Classification Where addressing climate change is: Finance information recorded Principal one of the main outcomes of the activity 100 percent of the activity value for the financial year Addressing climate change risks or opportunities is fundamental to the design of the activity. The activity includes climate change as an important outcome. Climate change is explicitly addressed through specific outputs Significant one of the outcomes of the activity Addressing climate change risks or opportunities is an important but not the principal reason for undertaking the activity. Climate change is explicitly addressed as part of outputs in the activity design, which do more than simply avoid a potential negative 30 percent of the activity value for the financial year unless: A more accurate figure is known or A different default figure is specified for the particular activity type impact Not targeted not an outcome of the activity Climate change opportunities and risks have been assessed but will not be significantly addressed through any of the outputs in the Results Framework 0 percent of the activity value for the financial year 63

64 In addition, certain activities are assigned different weightings and Table 4 provides further guidance on the application of the climate change markers for those. Table 4: Additional information recorded in the Climate Change Inventory for particular activities Activity Description Marker and classification Weighting Disaster risk reduction and management The activity is driven by a prime concern for extreme weather events. Adaptation: Principal 100 percent The activity is driven by a prime concern for seismic events (earthquakes, tsunamis), but where extreme weather events occur. Adaptation: Significant 50 percent Renewable energy and energy efficiency Any activity dealing with renewable energy and/or energy efficiency whether the prime concern is energy security, economic growth, climate change, or any combination. Mitigation: Principal 100 percent Energy upgrading Energy upgrading activities where the outcome of the activity is safer access to energy supplies in the presence of extreme weather events can potentially be marked significant. Adaptation: Significant 30 percent Looking ahead New Zealand will continue to deliver practical and effective support that realises positive benefits to the challenges of climate change for developing countries. Our objective is to support the sustainable development of climate resilient communities and infrastructure with a particular focus on the Pacific, and to fulfil New Zealand s commitment to the goal of mobilizing jointly US$100 billion a year by 2020 to address the needs of developing countries. Although most of New Zealand s climate finance will continue to be delivered through bilateral development assistance, New Zealand supports efforts to mobilise finance from a wide variety of sources, public and private, bilateral and multilateral, including alternative sources of finance. The Pacific Energy Summit (Auckland, March 2013) is a practical example of New Zealand s approach. The Summit was the first of its kind in the Pacific and was designed to fast-track solutions to the Pacific s pressing energy needs. The Summit was co-hosted by New Zealand and the European Union and secured donor commitments of NZ$635 million to advance renewable energy and energy efficiency projects across the Pacific. This was made up of $255 million in grant funding and $380 million in concessional loans. Key contributions included a contribution from New Zealand of $65 million in grants, and from the European Union of $52 million which includes $37 million in grants and $15 million in concessional loans. New Zealand s Pacific Energy Summit commitment of $65 million will assist Pacific island countries to realise their renewable energy and energy efficiency plans. This funding is being delivered in stages over the next three years. New Zealand is currently planning the resources required to implement the Pacific Energy Summit outcomes with our partners. The rate of implementation will depend on the readiness of partner countries, projects, funding partners and availability of funding. Drawing on our experience, New Zealand is working closely with our international partners to deliver effective climate change finance through the international climate change negotiations. We are working to improve Pacific access to climate finance, including from the private sector. That will help deliver real benefits to small island developing states in the Pacific. 64

65 Highlights H. Norway Norwegian Climate Finance 2012 Norway s bilateral climate finance was 954 million USD in 2012, while the level in the two preceding years was USD 682 and USD 705 million, respectively.. In 2006 the share of bilateral climate finance in the overall Official Development Assistance (ODA) budget was around 3 %, which by 2012 had increased to 18 %. During the same period, the total ODA budget also increased from an already high level. Norway pledged USD 1 billion for REDD+ for the fast start period. This commitment has been fulfilled. The main priorities for Norwegian Climate Finance in recent years have been on reducing emissions from deforestation and forest degradation and promotion of renewable energy and energy conservation/efficiency. Adaptation to climate change is another priority, with particular focus on food security and disaster risk reduction. The Norwegian Government has long emphasised the strong links between environment and development. The current policy is available in the White Paper Towards Greener Development ( ). The budget for climate change mitigation and adaptation assistance has increased strongly over the past 5-6 years. In 2012, Norwegian multilateral core support to organisations that have been classified as climate relevant was USD 371 million. For the fast start period as a whole, this figure is almost USD 1.1 billion. The largest share of bilateral climate finance, due to our main focus on REDD+ and renewable energy, is going to mitigation activities - USD 779 million in At the same time, efforts are being made to scale up financial assistance for adaptation, which has increased from USD 67 million in 2010 to USD 85 million in Support for activities classified as both mitigation and adaptation increased from USD 29 million to 91 million over the same period. Energy production and consumption is one of the largest sources of emissions of climate gases. Norwegian assistance to clean energy use public financial sources to mobilize and incentivize commercial investments that lead to increased energy access, energy efficiency and climate change mitigation in developing partner countries. Last year the total amount channelled bilaterally and through multilateral institutions to support such activities reached approximately USD 300 million. 1. General ****** This report, while focusing on 2012, also gives aggregate figures for the whole Fast Start period. As will be seen, there has been a significant increase in such assistance over the period. In Decision 1/CP.16 relevant parties were invited to submit information on the resources provided for the fast start period ( ). Reference is made to our reports covering 2010 and Norway is pleased to submit the information below on actual disbursements in All numbers are ODA contributions; non-oda contributions to various climate change activities are not included. All Norwegian assistance mentioned in this report is on a grant basis (no loans). The main goal of Norway s ODA is poverty reduction, equitable distribution of social and economic goods and sustainable development. The strong interdependence between environment and development has been emphasised by the Government, and the budget for climate change adaptation and mitigation has increased strongly over recent years. It should also be noted that efforts are being made, where relevant, to integrate climate change concerns into all development efforts. This is not captured in the report or in the numbers. It is sometimes difficult to single out assistance for adaptation from more general development assistance, which often also contributes to improving resilience to climate change. 65

66 Fast start finance should reflect an enhanced effort by governments around the world. Norwegian total ODA has not only exceeded 0.7 % of Gross National Income (GNI) for many years, but in fact oscillated around 1 % in the last few years. All our climate finance can be counted beyond the 0.7 % threshold. Moreover, we have steadily increased the volume of our ODA budget as the economy has been growing, so that the increase in climate finance has not reduced other ODA. In last year`s report, we concluded that it is very difficult to report accurately on the percentages of core funding to multilateral organisations that is climate related, and, in turn, how much of this was for mitigation and adaptation, respectively. Especially in view of the likely unfortunate consequences of subjective estimates - different countries assigning different percentages to one and the same organisation - we therefore then decided to simply present the overall core support to those multilateral organisations that we classified as climate relevant, in the sense that core support could be assigned to climate change activities. We have followed the same procedure this year, recognising its shortcomings but still wishing to indicate where climate support has taken place. We still believe it could be worthwhile to look into the possibility of having the multilateral organizations make their own estimates of these percentages, to avoid discrepancies between countries in the way estimates are made. 2. Adaptation Assistance for climate change adaptation has been scaled up over the last two to three years as a matter of Government priority. In the table on page 10, it can be seen that the total amount for adaptation assistance (main and significant objective) increased from USD 67 million in 2010 via USD 76 million in 2011 to USD 85 million in 2012, an increase of almost 30% over the fast start period. The areas where assistance has increased the most are disaster risk reduction and food security. Support for climate services, mainly through the WMO, has also increased since 2010, as has support for national adaptation planning, inter alia through the Least Developed Country Fund (LDCF) and the Pilot Programme for Climate Resilience (PPCR). Africa received the largest share of this support, about 40 % of the total adaptation budget in Among countries, Haiti, Mozambique and India received the highest amount of funding for climate change adaptation in REDD+ activities in 2012 and for the Fast Start period The Government of Norway s International Climate and Forest Initiative (NICFI) constitutes by far the largest part of Norway`s mitigation assistance. The Initiative supports development of an international REDD + architecture for achieving cost-effective and verifiable reductions in greenhouse gas emissions from deforestation and forest degradation in developing countries (REDD +). The initiative promotes the development of international climate finance mechanisms and works closely with other donors, multilateral organizations and REDD + countries to reach its goals. In 2012, Norway disbursed approximately USD 441 million to REDD+ related activities. NICFI worked closely with committed developing forest countries and multilateral REDD+ initiatives, such as the Forest Carbon Partnership Facility (FCPF), the UN-REDD programme, the Forest Investment Programme (FIP) under CIF (Climate Investment Funds) and the Congo Basin Forest Fund (CBFF) to finance REDD+ activities. During the period , Norway disbursed a total of approximately USD billion. Bilateral partnerships In August 2008, Norway s Prime Minister Jens Stoltenberg announced that Norway will contribute 1 billion USD to Brazil s Amazon Fund if Brazil reduces deforestation in its Amazon region. Norway s contributions are results-based, in line with the Amazon Fund s incentive structure. The Amazon Fund finances projects that contribute to implementing Brazil s plans to reduce deforestation. The record low deforestation results achieved in 2011 prompted a Norwegian commitment of USD 167 million in To date, Norway s commitment to the Amazon Fund is approximately USD 592 million, of which around USD 569 million were disbursed in the period. In November 2009, Norway and Guyana signed a Memorandum of Understanding declaring the two countries determination to provide a working example of how partnerships between developed and developing countries can reduce deforestation and forest degradation also in countries with minor deforestation. Norway contributed approximately USD 65.8 million to support Guyana s REDD+ Investment Fund in 2010 and In 2012, 66

67 approximately USD 0.4 million was disbursed to Conservation International for its work on MRV (Measurement, Reporting and Verification) activities in Guyana. A total of USD 66.2 million was disbursed in the years In May 2010, Norway and Indonesia agreed to enter into a partnership to support Indonesia s efforts to reduce emissions from deforestation and degradation of forests and peat lands. In 2012, Norway disbursed USD 2.9 million for Indonesia related activities. In the period, Norway`s contribution to Indonesia was approximately USD 34.6 million. Through a Memorandum of Understanding signed in May 2010, Mexico and Norway agreed to work together on climate, forests and environment. Norway supported Mexico with approximately USD 7.5 million in 2011 to reinforce REDD+ readiness in Mexico and enabling south-south cooperation. This is also the sum disbursed in the period. In 2009, Tanzania and Norway entered into an agreement on support for REDD activities. In the period , Norway disbursed a total of USD 28.5 million under this agreement. Norway s collaboration with Brazil (the Amazon Fund), Guyana, Tanzania, Indonesia and Mexico should have profound effects and produce fast results, demonstrating that reducing emissions from deforestation and forest degradation in developing countries is possible. The collaboration with Brazil, Guyana and Indonesia exemplify bilateral partnerships where payments are made for results in reduction of CO2 emissions from deforestation and forest degradation on a national scale. Multilateral collaboration and support to civil society The Forest Investment Program (FIP) under the CIF provides financing at scale to a limited number of pilot countries to support the implementation of their national REDD+ strategies. Over time, the intention is to help countries access larger and more sustainable results-based REDD+ payments. FIP has selected eight pilot countries. In 2010 and 2011, Norway contributed USD 48 and 58.3 million, respectively, to the FIP. For the Fast Start period, the total is USD million. The UN-REDD Programme is a collaborative partnership bringing together the expertise of the UN Food and Agricultural Organization (FAO), the UN Development Program (UNDP) and the UN Environment Program (UNEP). The Programme has 35 member countries. Through its global activities UN-REDD contributes to the development of methodology and building of capacity within areas such as REDD+ governance, MRV, biodiversity and green economic development. In 2012, Norway contributed USD 32.8 million to the UN-REDD Programme. For the period, the total is USD 85.8 million. In May 2010, the interim REDD+ Partnership was established at the Oslo Climate and Forest Conference. The Partnership, now comprised of 75 countries, has contributed to closer cooperation among tropical forest countries and donors to reduce deforestation and forest degradation. The partnership has provided an important forum for dialogue among parties involved in the UNFCCC process. It has also promoted transparency around REDD+ financing through the development of the Voluntary REDD+ Database (VRD) to track fast-start finance for REDD+ and carrying out gap analysis of financing for REDD+ activities. The Carbon Fund of the World Bank`s Forest Carbon Partnership Facility (FCPF) is piloting performance based payments for verified emission reductions from REDD+ programs. In 2012, Norway disbursed approximately USD 150 million for this purpose, this also being the total contribution during the period. Strategic partnerships have also been set up with selected NGOs and research institutions. These are intended to promote innovation and to encourage systematic knowledge dissemination and debate on the need for a new climate regime that includes deforestation and forest degradation. In 2012, approximately USD 30.5 million was channelled through the Norwegian Agency for Development Cooperation (Norad) for such activities. For the period, the total was USD 90.3 million. 67

68 An overview of disbursements for is given below 1 : Year Projects 2010 Disbursed* (USD) 2011 Disbursed* (USD) 2012 Disbursed* (USD) (TOTAL) Disbursed* (USD) UN-REDD Programme 33 mill 20 mill 32, 8 mill 85.8 mill Forest Carbon 9.3 mill mill Partnership Facility (readiness) Forest Carbon mill 150 mill Partnership Facility (carbon fund) Forest Investment 48 mill 58.3 mill mill Programme Congo Basin Forest 26.6 mill mill 52.4 mill Fund Support to Civil society 27 mill 30 mill 33.3 mill 90.3 mill (Norad) Brazil (BNDES) set 236 mill mill mill mill aside on promissory note DR Congo R-PP mill 4.3 mill Mexico mill mill Guyana (World Bank) 29.4 mill 36.4 mill 0.4 mill 66.2 mill Indonesia 30.7 mill 0.9 mill 2.9 mill 34.5 mill Vietnam mill 8.3 mill Myanmar mill 0.09 mill Tanzania 7.3 mill 9.7 mill 11.5 mill 28.5 mill Other projects 2.8 mill 6.3 mill 5.2 mill 14.3 mill Total disbursed mill mill mill mill * Figures are based on an average exchange rate of 1 USD = 6 NOK. In other tables, average rates may have been calculated slightly differently, giving rise to minor inconsistencies. A detailed breakdown of Norwegian Fast-start Finance for REDD+ may be found at the Voluntary REDD+ Database website ( 4. Energy Norwegian assistance to clean energy use public sources to finance ways that mobilize and incentivize commercial investments that lead to increased energy access and energy efficiency in development partner countries. Social and environmental considerations are included, as well as strong involvement of civil society, private- and public actors. Last year the total amount channelled bilaterally and through multilateral institutions to support these activities reached NOK 1.8 billion or approximately USD 300 million. This figure includes Norfund s investment in renewable energy. Norfund is the commercial investment instrument in Norwegian development assistance (Development Finance Institution). Africa (East) followed by a few countries in Asia are the largest recipients of Norwegian assistance to clean energy. Acknowledging that access to energy is a necessity in the fight against poverty and a prerequisite for economic development, the Clean Energy for Development Initiative was launched in In 2011, The Prime Minister of Norway and the United Nations Secretary-General initiated the International Energy and Climate Initiative - Energy+. 1 These figures do not correspond to funds actually used at country level during the period; there are at any time substantial balances kept in various facilities for Norwegian funds. 68

69 Norway is also an active supporter of the UN Secretary General s initiative Sustainable Energy for All (SE4All). All these initiatives support, in different ways, efforts to achieve universal access to sustainable energy and reduce greenhouse gas emissions in developing partner countries. In order to ensure reliable access to energy, it is crucial to contribute to building up sound, efficient and wellfunctioning institutions in the energy sector. Support is therefore provided to government institutions, to power utilities, regional and multilateral bodies, the private sector, as well as civil society. The following table shows assistance for the energy sector in the period that was coded with the climate markers: Climate change mitigation (only) Total US$ mill. US$ mill. US$ mill. US$ mill. Main objective Significant objective Total mitigation Climate change adaptation (only) Main objective Significant objective Total adaptation Both climate change mitigation and adaptation Total bilateral aid directed at climate change Engaging the private sector Despite the robust economic growth seen over the past decade in many emerging markets, investment in new generating capacity has often failed to meet the growth in demand. As a result, many countries have to rely on emergency solutions, often through installing large volumes of diesel or heavy fuel oil generators. The only way to overcome the major challenges of ensuring global access to electricity services is to accelerate investment in long-term solutions making use of the renewable energy resources available in each country. Norway aims at leveraging funds for the reduction of energy poverty. Public and donor funds are not alone able to finance the significant amounts needed to boost energy sector development; thus Norwegian assistance for clean energy uses public sources to mobilise and incentivise commercial investment that lead to increased energy access and energy efficiency. 5. The numbers The report covers our bilateral (including support to non-governmental organisations) and multilateral support for climate change action in developing countries. It should be noted that the information, as in last year s report, is based on the OECD/DAC reporting system, which uses markers for climate change mitigation and adaptation. The markers indicate degree of relevance only. Consequently, the figures should be interpreted with caution. While a large part of our total climate finance is allocated to REDD+ and renewable energy programmes, both of which are classified as mitigation, several REDD projects may have strong adaptation components, since forest conservation in many cases will increase climate change resilience. Also, renewable energy projects may promote climate change adaptation. In these cases, both markers have been used. This has been part of a conscious effort to ensure more consistent use of (especially) the adaptation marker since For 2011, we reported that the numbers for adaptation 69

70 were too low, since not all disaster risk reduction (DRR) assistance was included. In 2012, the adaptation marker was used also for DRR. In our view, there is clearly a need for better guidance on what to include under adaptation. It should also be noted that the term bilateral includes multi-bilateral assistance, i.e. bilateral assistance carried out through multilateral channels/organisations/funds. This applies to agreements with multilateral organisations where the contributions are earmarked for climate change activities. Only core support to such organisations is counted as multilateral in the system. Thus, for example, contributions to funds like the Least Developed Countries Fund (LDCF) and the Special Climate Change Fund (SCCF) are included in the multilateral figures. Bilateral climate finance The table below shows total bilateral 2012 finance directed at climate change to be USD 851 million, compared to USD 734 million in A large share of bilateral climate finance is going to REDD+ and renewable energy, which are both defined as climate change mitigation. Efforts have been made in the past few years to scale up assistance for adaptation. It is also very difficult to single out assistance for climate change adaptation from more general development assistance, which contributes to making countries more resilient towards climate change impacts. The following table, and the one below, also include contributions through some multilateral channels like for example, the Climate Investment Funds (the Strategic Climate Funds SREP, PPCR and FIP), GEEREF, REEEP, etc. Norwegian bilateral assistance directed at climate change mitigation and adaptation Climate change mitigation (only) Total USD mill USD mill USD mill USD mill Main objective Significant objective Total mitigation Climate change adaptation (only) Main objective Significant objective Total adaptation Both climate change mitigation and adaptation Total bilateral aid directed at climate change ) Based on Norwegian assistance agreements marked with the OECD/DAC policy markers climate change mitigation and climate change adaptation. The markers do not necessarily imply that the whole amount is spent on climate change actions, rather that the agreements also are directed at such actions. Regional distribution of bilateral climate finance The table below presents the above figures distributed by region. It shows, inter alia, that around 50 per cent of the adaptation assistance that can be tracked geographically was allocated to Africa, being directed at the most vulnerable countries. Norwegian bilateral assistance directed at climate change mitigation and adaptation by region, Total Main Region USD 1000 USD 1000 USD 1000 USD 1000 Mitigation Africa See footnote 2. 70

71 (only) America Asia Europe Not geographically allocated Oceania The Middle East Total mitigation Africa America Adaptation (only) Asia Europe Not geographically allocated The Middle East Total adaptation Africa America Mitigation and adaptation Asia Europe Not geographically allocated The Middle East 9 9 Total mitigation and adaptation Total climate change related bilateral aid ) Based on Norwegian assistance agreements marked with the OECD/DAC policy-markers climate change mitigation and climate change adaptation. The markers do not necessarily imply that the whole amount is spent on climate change actions, rather that the agreements also are directed at such actions. Norwegian bilateral assistance directed at climate change mitigation and adaptation by region and country, Total Main Region Recipient country US$ 1000 US$ 1000 US$ 1000 US$ 1000 Mitigation (only) Africa Africa Regional Angola Cameroon Congo, Dem. Rep Eritrea

72 Ethiopia Ghana Kenya Liberia Madagascar Malawi Mozambique Nigeria South Africa South of Sahara Regional South Sudan Sudan Tanzania Togo Uganda Zambia Africa Total America America Regional Brazil Chile Cuba Dominican Republic Guatemala Guyana Haiti Mexico Nicaragua North & Central America Regional Panama Peru St.Vincent & Grenadines America Total

73 Asia Afghanistan Armenia Asia Regional Azerbaijan Bangladesh Bhutan Cambodia Central Asia Regional China Georgia India Indonesia Kazakhstan Kyrgyz Rep Laos Malaysia Mongolia Myanmar (Burma) Nepal Pakistan Philippines Sri Lanka Tajikistan Viet Nam Asia Total Europe Albania Belarus Bosnia-Herzegovina Europe Regional Kosovo Macedonia (Fyrom) Montenegro 0 0 Serbia Ukraine

74 Europe Total Not geographically allocated Global Unspecified Not geographically allocated Total Oceania Papua New Guinea Oceania Total The Middle East Palestine The Middle East Total Total mitigation (only) Adaptation (only) Africa Africa Regional Angola Botswana 3 3 Burundi Congo, Dem. Rep Cote D'Ivoire Eritrea Ethiopia Ghana Kenya Madagascar Malawi Mali Mozambique Namibia Niger Nigeria Somalia South Africa South of Sahara Regional South Sudan Sudan Tanzania Uganda

75 Zambia Zimbabwe Africa Total America America Regional Brazil Cuba Guatemala Haiti Nicaragua North & Central America Regional America Total Asia Armenia Asia Regional Bangladesh Bhutan Cambodia China Georgia India Indonesia Laos Myanmar (Burma) Nepal North Korea Pakistan Philippines South & Central Asia Regional South Asia Regional Sri Lanka Thailand Viet Nam Asia Total Europe Europe Regional

76 Ukraine Europe Total Not geographically allocated Global Unspecified Not geographically allocated Total The Middle East Jordan Palestine The Middle East Total Total adaptation (only) Mitigation and adaptation Africa Africa Regional Congo, Dem. Rep Eritrea Ethiopia Kenya Liberia 8 8 Malawi Mali Mozambique South Africa South of Sahara Regional Tanzania Uganda Zambia Africa Total America America Regional Haiti North & Central America Regional 2 2 America Total Asia Afghanistan Armenia Asia Regional Bangladesh Bhutan

77 China India Indonesia Myanmar (Burma) Nepal Pakistan Philippines Sri Lanka Viet Nam Asia Total Europe Albania Europe Regional Macedonia (Fyrom) Serbia Ukraine Europe Total Not geographically allocated Global Unspecified Not geographically allocated Total The Middle East Syria 9 9 The Middle East Total 9 9 Total mitigation and adaptation Total climate change related bilateral aid ) Based on Norwegian assistance agreements marked with the OECD/DAC policy-markers climate change mitigation and climate change adaptation. The markers do not necessarily imply that the whole amount is spent on climate change actions, rather that the agreements are also directed at such actions. Core support to multilateral institutions Core Support to multilateral institutions partly or fully targeting climate change in is presented in the table below, but without estimates on the share of these grants targeted for climate change in general, and to adaptation and mitigation in particular. For some, estimates are more accurate than for others. For example, we know that the climate change focal area of the GEF receives around 30 % of total resources in a given GEF period. The GEF climate funds` (LDCF and SCCF) deal with climate matters, as do all activities of the UNFCCC Secretariat. It is much more difficult to estimate the climate share of contributions to, for example, the UNDP or the WFP. We believe the statistical values as such, and the value of the end product of this exercise, would improve if these percentages were one and the same across countries. Norwegian multilateral contributions to organisations classified as climate relevant,

78 (mill. USD) Agreement partner Total UNDP - UN Development Programme AFDF - African Development Fund WFP - World Food Programme CGIAR - Consultative Group on International Agricultural Research UNEP - UN Environment Programme GEF - Global Environment Facility IFAD - International Fund for Agricultural Development UN-HABITAT - United Nations Human Settlements Programme ASDF - Asian Development Fund NDF - Nordic Development Fund GEF - LDCF - Least Developed Countries Trust Fund AFDB - African Development Bank IBRD - International Bank for Reconstruction and Development UNFCCC - United Nations Framework Convention on Climate Change GEF - SCCF - Special Climate Change Fund ASDB - Asian Development Bank FAO - Food and Agricultural Organization of the United Nations UNIDO - UN Industrial Development Organisation UNISDR - UN International Strategy for Disaster Reduction IDB - Inter-American Development Bank Grand Total Lessons learned - Statistical difficulties, including imprecise Rio markers, as well as much leeway for individuals using the markers 3. - For most investment channels, the process from developing investment plans to fully developed projects, including feasibility studies, etc., takes longer than one would expect at the outset. In addition, some newer channels take time to establish their operational procedures and management tools. Thus, with reference to the Fast Start Period, the phase of substantial disbursement for implementation has still not arrived. These experiences should not be taken lightly and be given full consideration in the on-going efforts to make the Green Climate Fund (and some national climate funds) operational. - Private sector climate finance: A long way to go before adequate monitoring and measurement is possible. But efforts are being made. 3 Although we note efforts by/among the Development Banks to harmonise classification of climate finance. 78

79 I. Switzerland Climate Change: Swiss Fast Start Financing from Public Sources (ODA) Executive Summary Developed countries have agreed to provide new and additional finance, approaching USD 30 billion for the period , to support developing countries` transition to low-carbon and climate-resilient growth with balanced allocation between Mitigation and Adaptation. This collective commitment is called Fast-Start-Financing (FSF). In February 2011, the Swiss Parliament decided to increase the level of Official Development Assistance (ODA) to 0.5% of Gross National Income (GNI). As part of this decision, a new and additional amount of CHF 125 million was allocated with immediate effect for the purpose of Swiss FSF. This amount was added in equal parts to the international cooperation budgets of the Swiss Agency for Development and Cooperation (SDC) and the State Secretariat of Economic Affairs (SECO). An additional amount of CHF 15 million is attributed to Swiss FSF as part of the Swiss contribution to the Fifth Replenishment of the Global Environment Facility (GEF). This brings the additional Swiss FSF from public sources i.e. ODA to CHF 140 million. This will bring total Swiss Climate Change financing for developing countries from public sources for the Fast Start Financing period of to an estimated CHF 400 million. As of December 31, 2012, 149 million of the additional Swiss FSF have been allocated. Disbursements reached CHF 113 million by the end of 2012 and are attributable in roughly equal parts to Mitigation and Adaptation. The largest share of additional Swiss FSF is not country- or region-specific: some CHF 55 million were allocated to global projects. The remainder has gone to projects and programs in Asia, Africa and Latin America. In line with normal implementation time horizons and associated tranche payments, Swiss FSF disbursements are set to continue through Overall Swiss Climate Change finance levels are projected to increase in line with the general increase of Swiss ODA as decided by Parliament. Introduction Climate Change represents a major global challenge and a potential threat to human welfare, economic and social development and to the fight against poverty. Aside from living in countries at greater exposure to extreme weather events such as drought, more intense storms, floods and environmental stress, poor people are also less able to cope with negative climate impacts on goods, infrastructure and income. Picture 1: The increasing frequency and intensity of floods as one example of the impacts of Climate Change Moreover, development benefits already achieved may be put in jeopardy by the continuing increase in global warming. Long before Climate Change became a major international policy issue, Switzerland has been active in fighting desertification, in prevention and emergency response to extreme weather hazards and cleaner and more efficient production of basic goods. In recent years, Climate Change has become a core issue: both SDC and SECO have progressively established innovative strategies linking policy dialogue with concrete Mitigation and Adaptation actions. Background Information 1 During the UNFCCC Conference of the Parties (COP) of 2009 in Copenhagen and again a year later in Cancun, developed countries agreed to a collective pledge to provide new and additional climate finance amounting to USD 30 billion for the period , with balanced allocation between Mitigation and Adaptation. This pledge is commonly referred to as FSF. At the COP in Cancun, it was further reaffirmed that funding for Adaptation will be prioritized for the most vulnerable developing countries, such as the least 1 Source: UNFCCC 79

80 developed countries, small island developing States and Africa. The COP invited developed country Parties to submit information on the extent and use of their FSF resources in May 2011, 2012 and finally in Key Parameters of Swiss FSF In February 2011, the Swiss Parliament decided to increase the level of ODA to 0.5% of GNI by This decision took into consideration the need for Switzerland to honor its FSF commitment. New and additional resources were provided for SDC to expand its technical cooperation and financial assistance for developing countries and for SECO to expand its support for economic and trade policy measures in the context of Climate Change and development cooperation. Other areas of Swiss international cooperation attributable to ODA under the existing rules of the Organization for Economic Co-operation and Development (OECD) are also set to benefit from this decision of the Swiss Parliament. Switzerland was one of just a few developed countries who increased their ODA in 2011 and Swiss ODA rose from million Swiss Francs in 2010 (0.39% of GNI) to million Swiss Francs in 2011 and to 2`800 million Swiss Francs (0.45%) in With this, Switzerland is now ranked as 10 th largest donor by the OECD. 2 In the context of Climate Change, Switzerland has a solid track record as a country advocating progressive policy in international climate negotiations as well as domestically (e.g. CO 2 Law). This has helped strengthen Switzerland s position as a major clean technology export country. For the purpose of this final FSF report, however, climate financing from private sector sources had to be categorically excluded, mainly due to definitional uncertainties and a lack of comprehensive and reliable data. Efforts are currently underway to try and quantify potentially eligible Swiss private sector contributions for future reporting purposes. An initial study as part of an OECD points to very large potential amounts, given the strength of the Swiss clean technology export sector. While this work continues, the FSF figures presented here are exclusively from public sources and are all grant based (no loans) attributable to ODA, as are the figures Switzerland has been reporting in regular intervals as part of our National Communications to the United Nations Framework Convention on Climate Change (UNFCCC). Furthermore, no effort has been made to attribute to FSF any share of Swiss core contributions to the multitude of multilateral organizations and multilateral funds Switzerland is contributing to, with the sole exception of the GEF (see details in the next section). The reason for this is the difficulty of reporting the climate-relevant percentage of core contributions to multilateral organizations. The Multilateral Development Banks (MDBs) have launched a collective effort to generate their own climate finance data. We strongly support this effort and would encourage all other multilateral funds and agencies to follow this example, as it is clearly superior and more conducive to overall coherence than individual donor country estimates of such data. Any Swiss private or public funds used for purchasing of international emission reduction certificates with the aim of achieving compliance with Kyoto Protocol targets and/or with national emission reduction obligations under the Swiss CO 2 law have also been excluded in this report. This merely reflects our understanding and interpretation of the key elements of FSF reporting. We do of course recognize the crucial importance of sound and progressively interlinked carbon markets in the global transformation towards a low-carbon economy. The general Swiss position on the provision of short and long term international Climate Change financing from public sources is that it should rest on a fair burdensharing formula based on both the relative capacity to pay and relative levels of greenhouse gas (GHG) emissions. The latter should be weighted more heavily, in line with the polluter pays principle and the principle of common but differentiated responsibilities and respective capabilities enshrined in the UNFCCC. Swiss FSF Agencies and Financing Levels Switzerland`s FSF uses existing delivery channels. Thus, some 90% of Swiss Climate Change financing is channeled through SDC and the SECO. SDC coordinates Swiss development policy and provides technical cooperation and financial assistance to developing countries. SECO provides support for economic and trade policy measures in the context of development cooperation. In addition, the Federal Office for the Environment (FOEN) provides the remainder of Swiss Climate Change financing through its budget for the Swiss contributions to the GEF, including its Climate Change funds Least Developed Countries Fund (LDCF) and Special Climate Change Fund (SCCF). 2 Source: OECD 80

81 Figure 1: Allocation of new and additional public funds for Swiss Fast Start Financing 44% 11% 45% SDC (63 million) SECO (62 million) GEF (15 million) As part of the aforementioned February 2011 decision by the Swiss Parliament to increase ODA, a new and additional amount of CHF 125 million was allocated with immediate effect for the purpose of Swiss FSF, in line with the relevant UNFCCC decisions of Copenhagen and Cancun. This amount was added in equal parts to the international cooperation budgets of SDC and SECO. For the purpose of FSF reporting, an additional CHF 15 million is included. This additional amount is part of the Swiss contribution to the Fifth Replenishment of the GEF and of the regular Swiss contributions to the LDCF and SCCF. For this current phase of the GEF, Switzerland has increased its contribution by some 70% in USD terms. So the 15 Million CHF included in Swiss FSF is the increase in Swiss contributions to the Climate Change Focal Area of the GEF and to its Climate Change funds LDCF and SCCF, as far attributable to This makes for an overall Swiss FSF contribution of CHF 140 million. This amount is new and additional to prior levels of Swiss Climate Change financing for developing countries from public sources. As of December 31, 2012, the full amount was allocated. Total Swiss Climate Change financing for developing countries from public sources for the Fast Start Financing period of amounts to an estimated CHF 400 million and will be reported as part of the 6th National Communication to the UNFCCC and the First Swiss Biennial Update Report to the UNFCCC in early Switzerland currently lacks comprehensive data for climate-relevant financing from other sources, such as private sector investment or export risk-guarantees. These figures are estimated to be very substantial, given that Switzerland is a large exporter of highly efficient clean technologies and an important foreign direct investor in developing countries. Future reports on Swiss climate financing may contain such elements, provided that they can be elaborated in a sound, plausible and transparent manner consistent with the outcomes of ongoing international efforts in this regard. Allocation Patterns and Expected Results Switzerland strives to allocate its FSF funds in a balanced manner to Climate Change programs and projects in developing countries dealing with Adaptation, forestry, and energy. This is consistent with established priorities for Swiss international cooperation and also with the letter and spirit of the Copenhagen Accord and the Cancun Agreements. The planning figures for were as follows: Table 1: Allocation Pattern Adaptation 20-30% Forests 20-30% Energy 35-55% Switzerland expects that a sound and effective implementation of its FSF Funds will yield verifiable results in developing countries, in areas such as: The development of Climate Change policies and measures that are integrated into public and sectoral policy at various levels (national, regional and local). Broader and more reliable access to renewable energy for rural communities and more efficient energy management and monitoring for towns and cities. The diffusion of clean technologies and processes that help reduce GHG emissions and improve the efficiency of industrial and other productive processes. The establishment of new financial incentives and mechanisms for sustainable forest management and the conservation of natural resources. Increased resilience of social, economic and ecological systems to the impacts of Climate Change through improved disaster risk management. Access to Swiss FSF Switzerland has internationally recognized capacities and expertise in low carbon technology development and deployment, as well as in energy- and resource efficiency. Equally recognized are Swiss capabilities and expertise in economic instruments and natural disaster risk management including through insurance and reinsurance schemes. In addition, there are numerous highly regarded climate-relevant Swiss scientific institutions. Our expert knowledge is widely deployed through international scientific collaboration and development cooperation at all levels. 81

82 CHF million FCCC/CP/2013/INF.1 Swiss FSF is readily accessible through the established bilateral development cooperation channels i.e. the programs of SDC and SECO (see map next page). Key multilateral partner institutions include the multilateral, regional, national development banks and numerous United Nations (UN) system agencies. In the category of climate-related global funds and networks, Switzerland supports the GEF, the World Bank s Climate Investment Funds (CIF), the Forest Carbon Partnership Facility (FCPF), Climate Finance Assist, the Global Facility for Disaster Risk Reduction (GFDRR), the Green Climate Fund (GCF) as well as the UN Adaptation Fund (AF). Swiss development cooperation operates in accordance with the principles of the Paris Declaration on Aid Effectiveness. This also applies to international cooperation in the field of Climate Change. Switzerland strives to improve the quality of aid and its impact on development and has taken several actions to achieve greater effectiveness: 1. Initiatives are concentrated on a reduced number of priority countries and special programs, thus focusing efforts and gathering in-depth expertise of regions and specific issues; 2. Development initiatives are coordinated with other development actors, thus targeting specific capacities more effectively and achieving greater efficiency and higher visibility; 3. Work is implemented mainly with a selection of key national and international partners, thus ensuring a high degree of professionalism as well as continuity in the measures taken. Map 1: Countries with Swiss FSF Activities 51 countries are benefiting from Swiss FSF. The largest number of countries is in Africa, with a subregional focus on the Sahel and Eastern and Southern Africa. Swiss FSF is also deployed in East and South Asia, as well as in Latin America and the Caribbean. to FSF are disbursed by Switzerland in the usual agreed manner (e.g. regular encashment of promissory notes by the World Bank as GEF Trustee or bilateral cooperation modalities based on contribution agreements, bilateral treaties, Memorandums of Understanding, etc.). At the end of 2011, a first Swiss supplemental ODA-contribution to the AF was made. By the end of 2012, the combined disbursement level for Swiss FSF was 75% and has progressed since. Figure 2: Commitments and Disbursements by the End of 2012 (in brackets the percentage of disbursements of the final objective) Adaption (55 %) Energy (93 %) Forest (64 %) GEF (100 %) Total (75 %) Disbursements Commitments As shown in Figure 2, CHF 58 million has been allocated to energy sector projects and programs (39% of the total). Nearly the same amount (CHF 55 million) has been allocated to Adaptation (37%). The disbursement level is higher in the energy sector (93%) than in Adaptation (55%). Some CHF 22 million have been allocated to forest sector activities (15% of the total) with a disbursement level of 64% by the end of The additional CHF 15 million for the GEF Climate Change Focal area counted as Swiss FSF have been fully disbursed, so the overall disbursement level was 75% at the end of This is at the upper end of the range predicted in the Swiss FSF report of May 2012 (60 to 80%). Figure 3 shows the geographical distribution. The largest share (CHF 55 million or 37% of the total) is not countryor region-specific. As Climate Change is a global phenomenon, numerous projects tackle Climate Change at a global level. Examples include the project Capacity Building for Climate Observation Systems CATCOS or the Resource Efficient and Cleaner Production Program RECP (see next chapter). CHF 42 million have been allocated in Asia, CHF 28 million in Africa and CHF 24 million in Latin America. Implementation and Disbursements Disbursement levels reflect the relative late start of Swiss FSF (March 2011). The additional GEF funds attributable 82

83 CHF millions FCCC/CP/2013/INF.1 Figure 3: Swiss Grants and disbursement levels (in brackets) by end of Global (98 %) Adaptation Asia (74 %) Africa (48 %) Latin America (58 %) Total (75 %) Disbursements Swiss Grant The number of natural disasters and of affected populations has greatly increased over the past thirty years. The increasing frequency of droughts, floods and other extreme weather events has been scientifically linked to increasing Climate Change. Development achievements are threatened as a consequence and there is a growing urgency to address both development and Adaptation deficits as related to current and future climate risks, with a special focus on the poorest and most vulnerable populations. Switzerland has allocated FSF of CHF 55 million in support of Adaptation measures in developing countries It is important to monitor the changing climate, to anticipate its impacts on human and natural systems, and to incorporate these findings into planning processes. This facilitates and enables targeted development programming at various levels on the basis of local climate scenarios, including initiatives to protect infrastructure and to manage water and agricultural resources. Switzerland is a host country to many climate-relevant international organizations, among them the World Meteorological Organization (WMO), the Intergovernmental Panel on Climate Change (IPCC), or the World Glacier Monitoring Service (WGMS). In addition, Switzerland has supported the AF since its launching in 1998, both through supplemental contributions and through continuous representation in the AF Board as representative of our UN Regional Group WEOG. Bilaterally, Switzerland concentrates its activities on high-risk areas such as arid (Sahel), mountainous (the Andes and Himalayas) or coastal areas (Bangladesh, Mozambique). Example 1: Capacity Building for Climate Observation Systems Location: Global Swiss Grant: CHF 2.3 million Project: Switzerland supports international climate monitoring activities coordinated by the Global Climate Observation System (GCOS) and Global Atmosphere Watch (GAW). This particular intervention establishes the means for long-term climate and air quality observations in currently under-represented areas of the world. Picture 2: The collection of climate data and their analysis is an important basis for the development of Adaptation measures. The expected impact of the intervention is an increased observational and scientific basis to inform climate and environmental policy decisions needed to predict, mitigate and adapt to Climate Change and health risks such as decreasing air quality, glacier changes impacting on natural hazards, regional landscape and the water cycle. Moreover, improved technical and scientific expertise and an enhanced capacity in the target countries to improve climate and environmental monitoring for the protection of life, livelihoods and property as well as environmental quality are expected. It will allow climate and environmental data (GHG, aerosol and glacier mass balance data) to be publicly available for policy makers and international data centers. Moreover the capacities in the target countries to produce, manage, and utilize such climate and environmental data should be increased. Example 2: Micro-Insurance against Climate Fluctuations Location: Southern Africa Swiss Grant: CHF million Project: To reduce the vulnerability of farmers in four countries (Malawi, Swaziland, Zambia, Zimbabwe) to Climate Change, to promote and protect investment in farming and improve food sustainability through the provision of an additional instrument, Switzerland is assisting in setting up a micro-insurance 83

84 scheme based on weather station measures of rainfall correlated with agronomic models. Picture 3: Example of a Weather Station This will provide an instrument to farmers to cope with climate fluctuations and thus enhances the regional program on food security. The project promotes a strong South-South interaction, borrowing from successful experiences in Kenya (in partnership with the leading national mobile network operator) and in Bolivia, where a similar micro insurance intervention supported by Switzerland has been successfully implemented. Example 3: Reducing the Vulnerability of Coastal Areas by Protective Construction Measures Location: Mozambique Swiss Grant: CHF million Project: This project is a repair project designed for present climate conditions including forecasted changes up to Switzerland is investing in a coastal infrastructure project to safeguard the city s development potential and protect the 550`000 citizens of Beira against the effects of Climate Changes by taking preventive measures against rising sea levels and more frequent and stronger cyclones. The erosion and flooding impact caused by waves and storm surges is reduced through the repair and upgrading of groynes (hydraulic structure built from an ocean shore to interrupt water flow and limit sediment movement) in order to enhance the resilience of citizens. Traditionally, infrastructure maintenance has been rather insufficient. This is addressed through targeted training of municipal technical staff, assisted by a strongly committed policy at municipal level to ensure the sustainability of the project. Example 4: National Climate Change Adaptation and Mitigation Strategies and climate-related Policy Decisions based on High-Quality Weather and Climate Information. Location: Peru Swiss Grant: CHF million Project: An innovative partnership called CLIMANDES (Servicios CLIMáticos con énfasis en los ANdes en apoyo a las DEcisioneS) has been launched at the extraordinary session of the World Meteorological Congress in Geneva in October By strengthening climate services in Peru through increased numbers of dedicated professionals and students trained in meteorology and climatology by the newly established regional training centre, CLIMANDES aims to provide high-quality weather and climate information. This provides government agencies relying on climate information with a strongly improved basis for decisionmaking. The project will extend through July 2015 under the coordination of the WMO and with several implementing partners such as the Peruvian National Service for Meteorology (SENAMHI) and the Federal Office of Meteorology and Climatology (MeteoSwiss). Picture 4: CLIMANDES Headquarter Example 5: Adaptation to Climate Change through Integrated Flood Risk Management Location: China Swiss Grant: CHF 520`000 Project: Water resources in Changjiang River are distributed unevenly in both time and space, which results in frequent flooding during the wet season, while in the dry season, people may suffer from water shortages. Therefore, appropriate integrated water resources management with multiple objectives such as flood management and drought relief or social-economic development are in strong demand and will significantly improve Changjiang River basin management. Current needs are strongly accentuated by increasing Climate Change. The project's purpose is to develop, implement, and then share China's experience in integrating climate Adaptation into risk management in the water sector, which reduces China's vulnerability to Climate Change. This effort is resulting in lessons transferable to other developing countries and also to Switzerland. Forests 84

85 At a global scale, deforestation is responsible for up to 20 percent of global annual GHG emissions. Most emissions from deforestation emissions originate in developing countries. Decisive action in this area is crucial, because tropical forests are of enormous importance in the fight against Climate Change. Forests have a big potential for adapting to the effects of Climate Change. CO 2 capture, water regulation, soil conservation, the prevention of natural disasters and the preservation of biodiversity are the most pressing issues. Switzerland contributed CHF 22 million to support measures in sustainable forest management in developing countries during the FSF period. Relying on its internationally recognized own forest management policies (the forest land cover has increased by 70% between 1876 and 1990), Switzerland supports activities generating both emission reductions and multiple economic, social and environmental benefits. Through sustainable forest management and enhanced forest governance enforcement, additional income can be created, biodiversity preserved and the source of livelihood of indigenous peoples and local communities can be maintained. Switzerland is also a major donor to the International Tropical Timber Organization (ITTO) and the Forest Carbon Partnership Facility (FCPF), among others (see example below). Picture 5: Deforestation Example 6: Forest Carbon Partnership Facility and REDD+ Location: Global Swiss Grant: CHF 8.5 million Project: FCPF is a major global partnership, which supports developing countries to get ready for REDD+. FCPF aims to reward countries and local communities for GHG emission reductions and avoided emissions achieved through sustainable forest management and forest conservation. Switzerland is a founding member of the FCPF and contributes not only financially but also through the provision of Swiss expertise. In 2011, the FCPF has launched a second phase, which includes pilot schemes and benefit-sharing mechanisms based on verified emission reductions. Switzerland has contributed an additional CHF 8.5 million to this new phase of the FCPF. At the moment, an additional third phase is under review. Example 7: REDD+ Presidential Task Force Location: Indonesia Swiss Grant: CHF Project: Home to the world s third largest tropical rainforest, Indonesia is a key country in fighting deforestation and in the implementation of the REDD+ program. Switzerland finances the REDD+ Presidential Task Force, supported by leading ministers and government officials in forestry, which will see the establishment of a REDD+ agency, the completion of a national REDD+ strategy and which aims to improve coordination between the government and local authorities. Example 8: Regional Forests and Climate Change Program Location: Andean Region Swiss Grant: CHF million Project: The overall goal of the program is to reduce vulnerability to Climate Change of Andean forest ecosystems and of the people that depend on them, by strengthening the linkages between Adaptation and Mitigation, within the framework of sustainable ecosystem management. With the underlying aim to improve livelihoods of communities depending on Andean forests, the programmes objective is to address the existing gap of knowledge and know-how to integrate Andean forests biomes to help to adapt to Climate Change and to mitigate GHG emissions in an integral way. Example 9: Indigenous People and Climate Change Location: Mekong Swiss Grant: CHF 0.92 million Project: Deforestation in Association of Southeast Asian Nations (ASEAN) countries contributes significantly to global GHG emissions, but forests also contribute to Mitigation and yield multiple benefits for the poor. In the countries of the Mekong subregion, ethnicity and poverty are highly correlated. 85

86 Picture 6: Indigenous People should take into Account in National Adaptation Strategies Switzerland is home to the internationally recognized MINERGIE sustainability standard for new and refurbished buildings and also to the International Organization for Standardization (ISO). It was ranked the world's most GHG-efficient economy by Yale and Columbia Universities in Switzerland capitalizes on this experience to assist developing countries in their efforts to reduce GHG emissions by promoting highefficiency technologies and the design of innovative sectoral policies. Picture 7: Brick Kiln in South Africa In countries like Laos and Vietnam, the recognition of the rights and interests of ethnic groups is a complex matter. In the name of forest conservation, they are often excluded from consultative processes about sustainable forest management. Therefore it is urgent to find ways for local forest communities and indigenous forest peoples to be included in decision-making. Building the capacities and modalities for a partnership between indigenous communities, civil society organizations, government agencies, and donors will pave the way for inclusive development and implementation of rights-based, equitable and pro-poor national strategies. The aim of the project is that national strategies take into account longterm forest conservation goals and the rights and concerns of indigenous peoples/ethnic minorities. Energy Rising world demand for energy is at the heart of the fight against Climate Change. The expanding global economy is increasing the need for fossil energy. Shortages in these fuels have been forecast, which will drive up prices and render energy unaffordable for the world's poorer populations. Access to modern and reliable sources of energy for these populations is thus a priority for development cooperation. The link to Climate Change makes energy a global issue, with strong emphasis on the promotion of low-carbon technologies and development paths. Switzerland engaged CHF 58 million for energy projects in developing countries. Switzerland intends to expand decentralized generation networks for renewable energies such as biomass and hydroelectricity and plans to redouble its efforts to increase the energy efficiency of small and medium-sized enterprises at home and abroad. Switzerland is also expanding its commitment to a variety of multilateral initiatives for the development and implementation of sustainable infrastructure projects. Example 10: Mobilizing Private Financing and Know- How for Renewable Energy Production Location: Global Swiss Grant: CHF million Project: The Private Infrastructure Development Group PIDG an innovative public-private partnership - mobilizes private sector investment to assist developing countries in providing infrastructure vital to boosting their economic growth and combating poverty. Picture 8: Lake Kivu 25MW methane gas power station in Rwanda Since 2002, the PIDG has committed total funds of USD 1.5 billion for more than 200 big infrastructure projects in 50 developing countries. One out of these 50 projects is the Lake Kivu 25MW methane gas power station in Rwanda. Hidden in the deep waters of Lake Kivu, one of Africa s Great Lakes situated between Rwanda and the Democratic Republic of Congo, 86

87 lies a colossal reserve of methane gas. The project represents the first large scale use of this methane. Extracting it will greatly reduce the environmental hazards associated with a natural release of the lake gases, and also provide an environmentally friendly and sustainable source of power generation. The PIDG company, Emerging Africa Infrastructure Fund (EAIF), was the co-arranger for this transaction and invested USD 25 million. It is one of the largest ever private sector investments in Rwanda. Example 11: Resource Efficient and Cleaner Production Program (RECP) with UNIDO Location: Global Swiss Grant: CHF 4.3 million Project: The global Resource Efficient and Cleaner Production Program (RECP) is a joint-initiative of UNIDO and UNEP. RECP aims at a productive use of all natural resources, including energy, water, materials and chemicals. This not only reduces environmental impact of the industry, but is also good for business. Saving production resources lowers production cost and improves the bottom line of companies. The global program capitalizes on a network of 50 existing Cleaner Production Centers, which promote and support the use of environmentally friendly technology in developing countries. In order to address the challenge of funding technological upgrades, RECP leverages on SECO s Green Credit Trust Fund (GCTF), which facilitates investments of small and medium enterprises into clean technology. Picture 9: Reduced Water Consumption in the White Meat Cleaning Process Example 12: Partnership for Market Readiness (PMR) with the World Bank Location: Global Swiss Grant: CHF 7 million Project: The PMR, launched at the Conference in Cancun in December 2010, provides financial and technical support to enhance middle income countries capacity to build market readiness components and implement market-based instruments, such as domestic emissions trading system (ETS) or a scaled-up crediting mechanism It is targeting a total capitalization of USD 100 million (reached USD 75 million at the end of 2011) and aims to provide grant support to 15 implementing country participants in total. PMR funding and technical assistance place particular focus on "readiness" aspects, including shoring up data collection and management, the establishment of baselines, and the creation and strengthening of domestic measurement, reporting and verification systems, as well as support for policy analysis and the development of a regulatory framework. Example 13: Topten Energy Efficiency of Appliances Location: China Swiss Grant: CHF 2.55 million (grant) Project: Switzerland has approved a grant contribution to the project "Topten China". The Topten approach, successfully implemented in Europe and the USA, produces reliable information on the energy consumption of appliances (cars, TV, air conditioner, refrigerators, lighting etc.) through independent testing. Topten is now established by Chinese partners: the best performing products on the market are regularly listed - a useful information tool on web or smartphone for consumers, producers and regulators in China. In 2012, the Topten website recorded 1.2 million page views and 4.8 million clicks. Example 14: Sustainable Charcoal and Biomass Energy Location: Tanzania Swiss Grant: CHF 2.91 million Project: In Tanzania, Switzerland is devoting funds to improve the efficiency and environmental sustainability of the charcoal industry and reduce biomass harvesting rates. The project promotes the transformation of Tanzania`s charcoal sector and it has two main components: The first component targets charcoal producing households and small-scale farmers in order to establish commercially viable value chains for sustainably sourced charcoal. This will be done through the introduction of village-based participatory forest management systems and the demonstration of forest-friendly agricultural practices. Also, sales and marketing strategy for sustainably sourced charcoal will be elaborated and particularly high-priced market segments will be identified. 87

88 Picture 10: Sustainable Charcoal The second component addresses the policy level. The project seeks to convince high-level decision and policy makers of critical importance of biomass fuels for Tanzania`s socio-economic development. This is expected to contribute to more biomass-friendly policies in Tanzania`s energy sector as well as to an active governance and legalization of the charcoal sector. Finally, this should promote more sustainable charcoal production also to the benefit of Tanzania s rural communities. Example 15: Green Building Code Location: Colombia Swiss Grant: CHF 1.7 million Project: The construction/building sector in general accounts for 45% of total energy and for 20% of total water consumption and contributes to 30-35% of total GHG emissions, especially in the residential sector. In the case of Colombia, 70% of the population lives in urban residential centers. The overall objective of developing a national Green Building Code is therefore to reduce CO 2 emissions by furthering energy efficiency, reducing water consumption during the use of buildings and improving waste management in the building sector. The program supports regulatory reform focused on the introduction of a national Green Building Code, strengthening implementation capacities of national stakeholders, and awareness raising in the academic sector and among end users. A pilot project in the city of Medellín will help to develop the regional extension of the national code. The main results of a mapping study suggest that the reduction in GHG in the construction/building sector could reach 25% in the next 15 years following the gradual implementation of a Green Building Code. This project will be part of a series of pilots in various regions at the IFC level - the most advanced being the green building project in Indonesia. According to progress and lessons learned, it has the potential to become a replication model for other countries. Multilateral: Global Environment Facility (GEF) For this current phase of the GEF, Switzerland has increased its overall contribution by 70% in US Dollar terms. The additional CHF 15 million included in Swiss FSF reporting consists of the increase in Swiss contributions to the Climate Change Focal Area of the GEF and to its Climate Change funds LDCF and SCCF, as far attributable to Attribution of an additional CHF 15 million in Swiss GEF-funding for Climate Change during the FSF period. The GEF unites 182 member governments in partnership with international institutions, civil society organizations (CSOs), and the private sector to address global environmental issues. About one third of GEF grants are spent on Climate Change action. GEF Adaptation funding is channeled through the LDCF and the SCCF. The current phase of the GEF is expected to deliver more than USD 1.5 billion for Climate Change action and to leverage additional billions from other sources. Outlook Climate finance from public sources should be used in more targeted ways to leverage additional funds from the private sector. Otherwise it is not possible to achieve the massive scale of climate-related financial flows needed to keep global warming within 2 degrees Celsius, in line with the ultimate objective of the Convention. Current climate finance negotiations are excessively oriented towards financial inputs and need more emphasis on results and impacts. Leading studies on climate finance and the initial findings of the UNFCCC Work Program on Long-Term Finance clearly show that conducive national policies and framework conditions are crucial to attract investment in low carbon technologies and enhanced resilience. It should therefore be a priority for all countries to develop and implement effective multisectoral Climate Change policies and to provide an environment that favors diffusion of low carbon technology and incentivizes investments in low carbon projects. Regarding the future provision of international Climate Change finance from ODA, Switzerland is projected to increase steadily in volume over the coming years, in conjunction with the general increase of Swiss ODA to 0,5% of GNI by 2015 (decision by the Swiss Parliament of February 2011). 88

89 Annex 1 Project Overview 89 Project Title Continent Target Countries Swiss Grant (CHF) Capacity Building for Climate Observing Systems (CATCOS) Global Colombia, Ecuador, Chile, Kenya, Indonesia, Vietnam, Kyrgyzstan Disbursemen ts End 2012 Sector 2`300`000 1`576`775 Adaptation Forest Carbon Partnership Facility (World Bank) Global Global 8`500`000 8`316`748 Forest Partnership for Market Readiness (World Bank) Global Brazil, Chile, Colombia, Costa Rica, Mexico, China, India, Indonesia, Thailand, Vietnam, Jordan, Morocco, South Africa, Turkey, Ukraine Resource Efficient and Cleaner Production Program (UNIDO) World Mountain Forum for Sustainable Development Renewable Energy and Energy Efficiency Partnership REEEP Global Egypt, Lao PDR, Tunisia, Ukraine, Cambodia, China, Colombia, Costa Rica, El Salvador, Guatemala, India, Jordan, Morocco, Peru, South Africa, Vietnam 7`000`000 7`000`000 Energy 4`300`000 4`300`000 Energy Global Global 152` `655 Adaptation Global Global 2`500`000 2`500`000 Energy Sustainable Business Advisory (IFC) Global Global 5`400`000 5`400`000 Energy Global Energy Basel Global Global 572` `500 Energy Swiss Platform Renewable Energy and Energy Efficiency in International Co-operation REPIC Global Global 1`000`000 1`000`000 Energy Scaling-Up Renewable Energy Program SREP Global Global 4`500`000 4`500`000 Energy Private Infrastructure Development Group PIDG Global Global 10`710`000 10`710`000 Energy Consultance Environnement / briques Africa Great Lakes 41`000 45`040 Energy Sustainable Charcoal and Biomass Energy Africa Tanzania 2`910`000 1`103`099 Energy Micro-Insurance against Climate Fluctuations Africa Malawi, Swaziland, Zambia, Zimbabwe 335` `974 Adaptation Reducing the Vulnerability of Coastal Areas by Protective Construction Measures Africa Mozambique 3`575`000 2`000`000 Adaptation Mitigation/Adaptation to Climate Change Africa Tunisia 1`200` `000 Adaptation Surveillance Environnementale Sahel Africa Mauretania, Senegal, Mala, Burkina Faso, Niger, Nigeria, Tchad, Sudan, Eritrea, Ethiopia 3`750` `000 Adaptation IUCN Forest Restoration Workshop Africa Rwanda 35`700 33`350 Forest FCCC/CP/2013/INF.1

90 90 Project Title Continent Target Countries Swiss Grant (CHF) Disbursemen ts End 2012 UNFCCC Adaptation Fund Workshop Africa Africa 200` `013 Adaptation Off-Farm Employment and Climate-Responsive Bricks Sector Africa Rwanda, Burundi 8`860`000 2`100`000 Forest Cleaner Production (UNIDO) Africa Tunisia 2`058`408 2`058`408 Energy PFM Capacity Baseline in North-West Africa South Africa 149`000 89`768 Energy Core Contribution Community Forestry / RECOFTC Partnership for Climate Change Adaptation in semi-arid Areas Climate Resilience through Risk Transfer Solution Asia Mekong 1`530`000 1`440`000 Forest Asia India 1`700`000 1`148`518 Adaptation Asia India 3`200`000 1`050`000 Adaptation Himalaya Climate Adaptation Asia India 3`720` `026 Adaptation Linking Herders to Carbon Markets Asia Mongolia 900` `487 Adaptation Pastoral Ecosystem Management Asia Mongolia 1`200`000 1`200`000 Adaptation Coping with Desertification Asia Mongolia 2`052`315 1`261`879 Adaptation Index-Based Livestock Insurance Asia Mongolia 1`400` `000 Adaptation Climate Change Resilience Fund (BCCRF) Asia Bangladesh 3`400`000 3`400`000 Adaptation Coastal Adaptation through Afforestation (CBACC) Asia Bangladesh 2`100`000 1`900`000 Adaptation Water & Energy Security through Micro Hydels Asia Pakistan 1`160` `244 Energy Economics of Adaptation in the Water and Agricultural Sectors Asia China 200` `015 Adaptation Small Actions in the Field of Climate Change Asia China 200`000 24`977 Energy Adaptation to Climate Change through Integrated Flood Risk Management Asia China 520` `262 Adaptation Topten Energy Efficiency of Appliances Asia China 2`550`000 1`461`456 Energy Power Plant Extension SCECO Asia Nepal 500` `290 Energy Poverty and Environment Initiative Asia Lao PDR 1`806` `605 Adaptation Indigenous People and Climate Change Asia Vietnam, Lao PDR, Cambodia, Myanmar, Indonesia, Nepal, Thailand 920` `000 Forest FCCC/CP/2013/INF.1

91 91 Project Title Continent Target Countries Swiss Grant (CHF) Disbursemen ts End 2012 REDD+ Presidental Task Force Asia Indonesia 990` `000 Energy Resource Efficient and Cleaner Production Asia Indonesia 4`064`136 3`600`000 Energy Renewable Energy Program Asia Indonesia 4`453`200 4`452`750 Energy Environmental and Social Financing Standards Asia Asia 1`846`600 1`846`600 Energy Climate Change Adaptation Program Climate Change and Glacial Hazards in the Andean Region National Climate Change Management Climate Change Communication and Incidence Climate Change Scaling-Up of PRRD National Climate Change Adaptation and Mitigation Strategies and climate related Policy Decisions based on High-Quality Weather and Climate Information CLIMANDES Sustainable Management of Natural Resources GESTOR Women and Climate Change BioGas FORDECAPI Regional Forests and Climate Change Programme Reducing Climate Change Risks Latin America Latin America Latin America Latin America Latin America Latin America Latin America Latin America Latin America Latin America Latin America Latin America Sector Peru 1`880`500 1`700`000 Adaptation Peru 4`000`000 2`087`339 Adaptation Peru 220` `215 Adaptation Peru 175` `566 Adaptation Bolivia 1`670`000 1`570`000 Adaptation Peru 3`175` `000 Adaptation Bolivia 2`700` `000 Adaptation Bolivia 200` `000 Adaptation Bolivia 700` `000 Adaptation Bolivia 1`750`000 1`100`000 Adaptation Chile, Ecuador, Colombia, Peru, Venezuela 272` `988 Forest Cuba 335` `000 Adaptation Retos de la Naturaleza Latina Cuba 180` `000 Adaptation FCCC/CP/2013/INF.1

92 92 Project Title Continent Target Countries Swiss Grant (CHF) UN-Habitat: Capacidades ciudad. Condesan Las Segovias Indigenous People and GEF and UNFCCC- REDD Green Building Code America Latin America Latin America Latin America Latin America Latin America Disbursemen ts End 2012 Sector Cuba 200` `000 Adaptation Andean Region 823` `671 Adaptation Nicaragua 3`500`000 1`310`000 Adaptation Latin America Regional 480` `500 Forest Colombia 1`622`000 1`370`000 Energy TOTAL 149`344` `606`917 FCCC/CP/2013/INF.1

93 Annex 2 Links For further information please visit the following websites: Swiss Fast Start Financing Contributors: SDC: SECO FOEN: Other useful links GEF Green Climate Fund UN Adaptation Fund Special Climate Change Fund Least Developed Countries Fund php Climate Investment Fund (CIF) World Bank Global Facility for Disaster Reduction and Recovery 93

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